Question 1

What loan types are common in Los Altos?

Accepted Answer

Jumbo loans dominate here — most homes price well above conforming limits. We also place a lot of bank statement and asset depletion loans for tech executives and business owners.

Question 2

What is a conforming loan limit in Santa Clara County?

Accepted Answer

The conforming limit sets the max loan amount eligible for Fannie Mae or Freddie Mac backing. Anything above that is a jumbo loan and follows stricter lender guidelines.

Question 3

Do I need a jumbo loan to buy in Los Altos?

Accepted Answer

Almost certainly yes. Even with a strong down payment, most Los Altos purchases exceed conforming limits. Plan for jumbo underwriting from the start.

Question 4

What credit score do I need for a jumbo loan?

Accepted Answer

Most jumbo lenders want 700 or higher. Some wholesale lenders we work with go down to 680, but the rate pricing improves significantly at 740 and above.

Question 5

How much do I need to put down on a jumbo loan?

Accepted Answer

Typically 10-20% depending on the loan size and your profile. Larger loans over $2M often require 20-30% down from most lenders.

Question 6

Can self-employed buyers qualify for a mortgage in Los Altos?

Accepted Answer

Yes — but not with a standard W-2 loan. Bank statement loans, 1099 loans, and P&L loans are built for exactly this situation. We close these regularly.

Question 7

What is a bank statement loan?

Accepted Answer

It uses 12-24 months of bank statements to calculate your income instead of tax returns. Ideal for business owners who write off a lot of expenses.

Question 8

What is an asset depletion loan?

Accepted Answer

Lenders divide your liquid assets over a set number of months to calculate qualifying income. It works well for retirees or cash-heavy buyers with low W-2 income.

Question 9

What is a 1099 loan?

Accepted Answer

It uses your 1099 forms — not tax returns — to verify income. Contractors and consultants who take heavy deductions use this to show their real earnings.

Question 10

How does the mortgage process work from start to close?

Accepted Answer

It runs in five stages: pre-approval, contract, appraisal and underwriting, conditional approval, and closing. In a competitive market like Los Altos, having a pre-approval ready before you offer is critical.

Question 11

How long does it take to close a mortgage in Los Altos?

Accepted Answer

Standard purchases close in 21-30 days. Jumbo loans and non-QM products can run 30-45 days depending on documentation complexity.

Question 12

What documents do I need to apply for a mortgage?

Accepted Answer

W-2 borrowers need two years of tax returns, two months of bank statements, and recent pay stubs. Self-employed buyers need 12-24 months of business or personal bank statements.

Question 13

What is a debt-to-income ratio and why does it matter?

Accepted Answer

It compares your monthly debt payments to your gross monthly income. Most conventional lenders cap it at 43-45%. Jumbo lenders sometimes go lower — around 38-43%.

Question 14

Can I use rental income to qualify in Los Altos?

Accepted Answer

Yes, if the property is already rented with a documented lease. DSCR loans go further — they qualify the loan on rental income only, with no personal income verification.

Question 15

What is a DSCR loan?

Accepted Answer

DSCR stands for Debt Service Coverage Ratio. It measures whether the property's rent covers the mortgage. It's designed for real estate investors, not owner-occupants.

Question 16

Are FHA loans available in Los Altos?

Accepted Answer

Technically yes, but the FHA loan limit in Santa Clara County may not reach most Los Altos price points. FHA rarely makes sense here — jumbo or conventional is usually the path.

Question 17

What is the difference between FHA and conventional loans?

Accepted Answer

FHA requires as little as 3.5% down and accepts lower credit scores, but carries mortgage insurance for the life of the loan. Conventional requires stronger credit but drops PMI once you hit 20% equity.

Question 18

Are VA loans available in Los Altos?

Accepted Answer

Yes. Eligible veterans can use VA loans with no down payment. There is no VA loan limit for full entitlement borrowers — this makes VA powerful in high-cost markets like Los Altos.

Question 19

What is an adjustable rate mortgage (ARM)?

Accepted Answer

An ARM has a fixed rate for an initial period — typically 5, 7, or 10 years — then adjusts annually. In a high-price market, ARMs can reduce your initial payment significantly.

Question 20

What is a portfolio ARM?

Accepted Answer

A portfolio ARM is held by the lender rather than sold to the secondary market. This gives lenders flexibility — we often use them for complex borrower profiles that don't fit standard guidelines.

Question 21

What is an interest-only loan?

Accepted Answer

You pay only interest for a set period, usually 5-10 years, which lowers the monthly payment. It's common with jumbo loans for buyers who expect income to grow or plan to sell before the IO period ends.

Question 22

What is a bridge loan?

Accepted Answer

A short-term loan that uses your current home's equity to fund a new purchase. In competitive markets, this lets you buy before selling — no contingency needed.

Question 23

What is a construction loan?

Accepted Answer

It funds the building of a new home in phases as work is completed. Once construction ends, it converts to a permanent mortgage. Lot loans are often part of this process.

Question 24

What is a HELOC?

Accepted Answer

A Home Equity Line of Credit lets you draw against your home's equity as needed. It's revolving credit — you only pay interest on what you use.

Question 25

What is a home equity loan?

Accepted Answer

Unlike a HELOC, a home equity loan pays out in a lump sum with a fixed rate and fixed monthly payment. Better for borrowers who know exactly how much they need.

Question 26

Can foreign nationals buy property in Los Altos?

Accepted Answer

Yes. Foreign national loans don't require a US credit history or Social Security number. Down payment requirements are higher — typically 25-40%.

Question 27

What is an ITIN loan?

Accepted Answer

An ITIN loan lets borrowers without a Social Security number use their Individual Taxpayer Identification Number to qualify. It opens homeownership to non-citizen residents.

Question 28

What is a hard money loan?

Accepted Answer

Asset-based lending with high rates and short terms — typically 12-24 months. Used for fix-and-flip projects or situations where speed matters more than cost.

Question 29

What are closing costs in Los Altos?

Accepted Answer

Plan for 2-3% of the loan amount in closing costs. On a $2M loan, that's $40,000-$60,000. Costs include lender fees, title insurance, escrow, and prepaid items like property taxes.

Question 30

What is mortgage PMI?

Accepted Answer

Private Mortgage Insurance protects the lender when you put less than 20% down on a conventional loan. It adds to your monthly payment until you hit 20% equity.

Question 31

How do mortgage points work?

Accepted Answer

One point equals 1% of the loan amount, paid upfront to lower your rate. On a large jumbo loan, buying down the rate can save significant money over time. Rates vary by borrower profile and market conditions.

Question 32

What is a reverse mortgage?

Accepted Answer

It lets homeowners 62 or older convert home equity into tax-free income without selling. No monthly mortgage payment is required — the loan is repaid when the home is sold or vacated.

Question 33

What is a profit and loss statement loan?

Accepted Answer

A CPA-prepared P&L statement replaces tax returns to verify income. It works well for newer businesses or borrowers whose recent income doesn't show clearly on older tax returns.

Question 34

How competitive is the Los Altos real estate market?

Accepted Answer

Los Altos is consistently one of the tightest markets in the Bay Area. Buyers who are fully pre-approved — not just pre-qualified — have a real edge when competing for homes.

Question 35

What is the difference between pre-qualification and pre-approval?

Accepted Answer

Pre-qualification is an estimate based on self-reported info. Pre-approval means we've pulled credit and reviewed income documents — sellers and agents take it far more seriously.

Question 36

Can I get a mortgage with a recent job change?

Accepted Answer

Yes, if you stay in the same field. Lenders want two-year employment history — a lateral move or promotion in the same industry usually doesn't hurt. A complete career change can complicate things.

Question 37

Do brokers offer better rates than banks?

Accepted Answer

Usually yes. We access wholesale rates from 200+ lenders, which are lower than retail bank rates. Banks can only offer their own products — we shop the entire market for you.

Question 38

What is an equity appreciation loan?

Accepted Answer

These programs let investors or lenders share in a home's future appreciation in exchange for better loan terms or reduced payments upfront. Structure and terms vary significantly by lender.

Question 39

What is a community mortgage?

Accepted Answer

Community mortgage programs target low-to-moderate income borrowers with reduced PMI or lower down payment requirements. Most Los Altos price points make these hard to use here.

Question 40

How do I start the mortgage process with SRK CAPITAL?

Accepted Answer

Contact us and we'll review your income, assets, and goals in a quick call. From there we identify the right loan programs across our lender network and get you to pre-approval fast.

Los Altos Mortgage FAQ: Real Answers from a CA Broker