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South San Francisco Mortgage FAQ
South San Francisco's diverse housing market serves everyone from first-time buyers to seasoned investors. Understanding mortgage options helps you make confident decisions in this competitive San Mateo County city.
From FHA loans with low down payments to jumbo loans for higher-priced properties, multiple financing paths exist. Each loan type serves different buyer situations and financial profiles.
These frequently asked questions address common mortgage concerns specific to South San Francisco buyers. We cover qualification requirements, loan comparisons, costs, and local market considerations.
Most mortgage approvals take 30-45 days from application to closing. Pre-approval can happen within 1-3 business days. Timeline varies based on loan complexity and documentation completeness.
FHA loans accept scores as low as 580 with 3.5% down. Conventional loans typically require 620 minimum. Better scores unlock lower rates and more loan options across all programs.
Down payments range from 0% (VA loans) to 20% or more. FHA requires 3.5%, conventional allows 3-5% for qualified buyers. Larger down payments reduce monthly costs and may eliminate PMI.
Standard documents include two years of tax returns, recent pay stubs, bank statements, and ID. Self-employed borrowers may need profit and loss statements. Your loan officer provides a complete checklist.
San Mateo County property taxes average around 1.1-1.2% of assessed value annually. Additional assessments may apply in certain neighborhoods. Rates vary by borrower profile and market conditions.
FHA loans require lower credit scores and smaller down payments but include mortgage insurance for the loan's life. Conventional loans offer more flexibility and allow PMI removal at 20% equity.
VA loans offer 0% down for eligible veterans and service members. USDA loans may be available in select areas. Most other programs require at least 3-3.5% down payment.
Closing costs typically range from 2-5% of the loan amount. These include appraisal fees, title insurance, escrow fees, and lender charges. Some costs can be negotiated with the seller.
Self-employed borrowers can use tax returns, profit and loss statements, or bank statements. Bank statement loans analyze deposits over 12-24 months. Each program has specific documentation requirements.
Private Mortgage Insurance protects lenders when down payments fall below 20%. You can avoid PMI by putting 20% down or using piggyback loans. PMI typically costs 0.5-1% of loan amount annually.
30-year mortgages offer lower monthly payments and more flexibility. 15-year loans build equity faster and save thousands in interest. Your choice depends on budget and financial goals.
Jumbo loans exceed conforming loan limits, currently $806,500 in San Mateo County. Many South San Francisco properties require jumbo financing. These loans typically need stronger credit and larger down payments.
Most loan programs accept gift funds from family members for down payments. Proper documentation and gift letters are required. Some programs have restrictions on gift fund usage.
DSCR loans evaluate rental property income rather than personal income. Investors buying South San Francisco rentals often use these. Qualification depends on property cash flow, not borrower employment.
ARMs start with lower fixed rates for 3-10 years, then adjust periodically. Initial rates are typically lower than 30-year fixed mortgages. Best for buyers planning to sell or refinance before adjustment.
Pre-qualification is an estimate based on basic financial information. Pre-approval involves full documentation review and credit check. Sellers take pre-approved buyers more seriously in competitive markets.
Yes, multiple loan programs serve investors including DSCR, conventional investment property loans, and portfolio products. Investment properties typically require 15-25% down and have slightly higher rates.
Rate locks guarantee your interest rate for 30-60 days during closing. Lock when rates are favorable or you've found a property. Extended locks may cost more but protect against rate increases.
Most lenders prefer DTI below 43-50% of gross monthly income. This includes all debt payments plus new housing costs. Lower DTI improves approval odds and may unlock better rates.
Points let you pay upfront to reduce your interest rate, typically 0.25% per point. Makes sense if you plan to keep the loan long-term. Break-even analysis helps determine value.
Yes, ITIN loans serve borrowers without Social Security numbers. These programs evaluate alternative credit and income documentation. Requirements vary by lender but options exist in South San Francisco.
Bridge loans provide short-term financing when buying before selling your current home. They help competitive buyers act quickly without sale contingencies. Typically 6-12 month terms with higher rates.
Bank statement loans analyze deposits over 12-24 months instead of tax returns. Useful for self-employed borrowers or those with complex income. Lenders calculate income from average monthly deposits.
Assumable mortgages let buyers take over the seller's existing loan terms. FHA, VA, and some ARM loans are assumable. Can be advantageous when assuming lower rates than currently available.
Most lenders require 6-12 months of payment history before refinancing. Rate-and-term refinances may have shorter waits than cash-out refinances. Refinancing makes sense when rates drop significantly.
Asset depletion loans calculate income from your investment accounts and assets. Retirement funds, stocks, and savings can qualify you. Useful for retirees or high-net-worth individuals with limited employment income.
Yes, lenders require proof of homeowners insurance before closing. Coverage must equal the loan amount or property value. Insurance premium is typically included in your monthly mortgage payment.
Interest-only loans let you pay just interest for 5-10 years, lowering initial payments. Principal payments begin after the interest-only period ends. Popular with investors and high-income borrowers expecting income growth.
Co-borrowers combine incomes to qualify for larger loan amounts. Both credit profiles and debts factor into approval. All co-borrowers share equal responsibility for repayment and property ownership.
Community Mortgages expand qualification by considering positive rent and utility payment history. Designed for creditworthy borrowers with limited traditional credit. May offer more flexible terms than conventional programs.
Using HELOC funds from another property for down payment is possible with proper documentation. Some lenders have restrictions on borrowed down payments. Piggyback loans structured at closing work differently than existing HELOCs.
South San Francisco offers proximity to San Francisco and Silicon Valley with relatively more affordable options. The biotech industry provides strong employment. BART access and diverse neighborhoods appeal to various buyers.
Competition varies by price point and neighborhood. Pre-approval and strong financing position you better with sellers. Working with experienced local lenders familiar with San Mateo County helps.
Construction loans finance land purchase and building costs, converting to permanent mortgages after completion. Requires detailed plans, licensed contractors, and larger down payments. Local zoning and permit knowledge is essential.
Local brokers understand San Mateo County market conditions, property values, and common transaction challenges. They offer multiple lender options and personalized service. Local expertise speeds up the process and solves problems faster.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.