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Loyalton Mortgage FAQ
Buying in Loyalton means navigating a small mountain town market with unique financing needs. Most lenders don't understand rural Sierra County properties.
We've closed hundreds of mortgages across California's smaller markets. These FAQs answer what actually matters for Loyalton buyers.
From self-employed borrowers needing bank statement loans to out-of-state investors buying cabins, we've seen every scenario. Here's what works.
Conventional and USDA loans work well for primary residences. Investment or vacation properties typically need conventional with 15-25% down or DSCR loans that qualify based on rental income.
Yes, Loyalton qualifies for USDA financing with zero down payment. You'll need decent credit and income limits apply based on household size.
Conventional loans start at 620 credit score. FHA accepts 580 with 3.5% down or 500 with 10% down.
Primary residence: 3-5% conventional or 0% USDA/VA. Investment properties require 15-25% down depending on the loan program.
Some do. We work with lenders experienced in mountain town properties who understand older construction and rural utilities.
Yes, using conventional investor loans or DSCR programs. DSCR loans qualify based on rental income potential, not your W-2 income.
Bank statement loans use 12-24 months of deposits instead of tax returns. Perfect for business owners who write off most income.
Conventional and FHA take 25-35 days. Cash-out refinances and investment properties may need 35-45 days for appraisals.
Two months bank statements, two years W-2s or tax returns, recent pay stubs, and ID. Self-employed borrowers need business bank statements.
California offers down payment assistance through CalHFA. USDA loans with zero down also work well for first-time Loyalton buyers.
Yes, most programs allow gifted down payments from family members. You'll need a gift letter stating the funds don't require repayment.
Expect 2-5% of the purchase price. This includes appraisal, title insurance, escrow fees, and lender charges.
Only if your property sits in a FEMA flood zone. Your lender will require a flood certification during the loan process.
FHA allows lower credit scores but requires mortgage insurance for the loan's life. Conventional drops PMI at 20% equity and offers better rates above 680 credit.
FHA 203k and conventional renovation loans let you finance repairs into the mortgage. Hard money works for severe rehabs with quick timelines.
Lenders count minimum payments toward your debt ratio. Keeping total debt below 43-50% of gross income helps you qualify.
Only if you're keeping the loan 5+ years. Mountain town buyers often move or refinance sooner, making points a poor investment.
Some lenders offer float-down locks up to 60 days. This protects you if rates rise while you shop for homes.
You can negotiate with the seller, bring extra cash, or walk if you have an appraisal contingency. Rural appraisals take longer due to limited comparable sales.
Conventional loans on primary homes typically don't require reserves. Investment properties need 2-6 months of mortgage payments in the bank.
Yes, using retirement account distributions, Social Security, or pension income. Asset depletion loans qualify you based on total savings divided by loan term.
Debt Service Coverage Ratio loans qualify based on rental income instead of personal income. Perfect for real estate investors buying multiple properties.
Yes, foreign national programs require 30-40% down and don't need US credit history. Expect higher rates than domestic borrowers.
Bridge loans close in 7-14 days using equity from your current home. Hard money closes in 5-10 days for all-cash speed.
Lenders need two years of consistent seasonal work in the same field. Gaps between seasons are fine if the pattern shows stability.
Sometimes. If it's a multi-unit property and you're occupying one unit, 75% of projected rental income counts toward qualifying.
ARMs offer lower initial rates for 5-10 years, then adjust annually. They work if you'll sell or refinance before adjustment.
No, but some investors prefer it for liability protection. Most lenders require you to personally guarantee the loan either way.
Yes, ITIN loans are available with 15-20% down. You'll need two years of US tax returns filed with your ITIN.
Look at APR, not just rate. APR includes fees and shows true borrowing cost over the loan term.
They review everything on your credit report. Recent issues matter most, but bankruptcies and foreclosures have 2-7 year waiting periods.
Yes, with 10% down on conventional loans. Lenders verify you can afford both payments and that it's truly for personal use, not rental.
Tell your broker immediately. Same industry moves usually work fine, but career changes can delay or kill approval.
Yes, VA loans offer zero down payment and no PMI. Sierra County properties qualify as long as they meet VA appraisal standards.
Brokers shop 200+ lenders to find programs and rates banks can't match. One application gets you multiple options instead of one bank's products.
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.