Montague Mortgage FAQs — Direct Answers from California Brokers

FHA loans start at 580, conventional at 620. Bank statement and DSCR loans can work with 680+ if you have strong assets or rental income.

FHA requires 3.5%, conventional as low as 3%, VA and USDA zero down. Investment properties need 15-25% depending on the loan program.

Not on qualification standards, but appraisals take longer and comparable sales can be limited. Some lenders hesitate on very rural properties.

Yes, most of Siskiyou County qualifies for USDA rural development loans. You need adequate income but zero down payment required.

Two years tax returns, two months bank statements, 30 days paystubs, W-2s. Self-employed borrowers need complete business returns and balance sheets.

30-45 days for most purchases. Rural appraisals add time because appraisers cover wider territories and comps can be sparse.

FHA allows lower credit and smaller down payments but charges mortgage insurance for life on loans over 90% LTV. Conventional drops PMI at 78% LTV.

Yes, through DSCR loans if the property cash flows. The rent must cover the mortgage payment by 1.0x to 1.25x depending on lender.

No. We close loans from 580 to 800+ credit scores. Lower scores need compensating factors like larger down payments or cash reserves.

Bank statement loans use 12-24 months deposits. P&L loans use year-to-date profit statements. 1099 loans work for contract workers with consistent income.

FHA 203k and conventional renovation loans work if repairs are under $35k. Bigger projects need construction loans or hard money first.

Typically 2-5% of loan amount. Includes lender fees, title insurance, escrow, appraisal, and county recording fees for Siskiyou County.

Only if you're keeping the loan past breakeven, usually 4-6 years. Most Montague buyers refinance or move before hitting that mark.

Yes. Bank statement loans use deposits, asset depletion uses investment accounts, DSCR loans use rental income only. Rates run 0.5-1.5% higher.

Zero down payment, no mortgage insurance, lower rates. Works for active duty, veterans, and qualifying spouses with valid Certificate of Eligibility.

Depends on loan type and profile. Investment properties often need 6 months reserves. Primary homes with strong credit may need zero.

Yes, with 20-30% down through foreign national loans. You need valid passport, visa, and US bank account for payments.

Debt Service Coverage Ratio loans qualify on rental income alone, no personal income needed. Investors use them to scale portfolios without tax return complications.

Fixed for 3, 5, 7, or 10 years then adjust annually. Start 0.5-1% lower than fixed rates. Best for buyers who'll move or refinance early.

Yes on primary residence loans. Donor must write letter stating funds are a gift, not a loan. Money must be sourced and seasoned.

Pre-qualified is an estimate based on what you tell us. Pre-approved means we verified income, assets, and credit through underwriting.

Yes, lenders require it before funding. Rural properties may face higher premiums due to fire risk in Northern California.

Not directly. You can take a higher rate for lender credits or ask sellers to contribute. VA loans allow funding fee to be financed.

Private mortgage insurance on conventional loans under 20% down. Drops automatically at 78% LTV or request removal at 80% with appraisal.

Lets you buy before selling current home. You carry two payments short-term but don't need home sale contingencies in competitive situations.

Raw land needs 30-50% down through specialized lenders. If you're building immediately, construction loans start at 20% down with approved plans.

Mortgages for borrowers without Social Security numbers who have Individual Taxpayer Identification Numbers. Require 15-20% down, valid work history.

Lock if you're satisfied with the rate and closing within 45 days. Floating risks rate increases but captures decreases if markets improve.

Yes. Standard single-family homes are easiest. Manufactured homes need permanent foundations. Properties on large acreage may need specialized lenders.

Yes, if you have equity and qualifying income. HELOCs work like credit cards against your equity. Home equity loans give lump sums.

Divides investment account balances by 360 months to calculate income. Retirees or high-net-worth buyers with assets but low reported income use this.

0.25-0.75% on identical scenarios. That's why we shop 200+ lenders instead of sending you to one bank. Rates vary by borrower profile and market conditions.

FHA, VA, and USDA loans are assumable with lender approval. Buyer must qualify and pay seller their equity. Rare but useful when rates rise.

Recent bankruptcy, foreclosure, or short sale within waiting periods. Major credit issues, undisclosed debt, or insufficient income to cover payments.

Depends on loan type and age. FHA may allow old collections under $2,000. Conventional often requires medical collections paid and other debts addressed.