Mount Shasta Mortgage FAQs – Your California Home Loan Questions Answered

FHA loans start at 580 credit score with 3.5% down. Conventional loans typically require 620 minimum, though higher scores get better rates.

FHA accepts 3.5% down, conventional goes as low as 3%. Putting down 20% eliminates PMI and strengthens your offer in competitive situations.

USDA loans offer zero down for eligible rural properties in Siskiyou County. VA loans also require no down payment if you qualify through military service.

W-2 earners need two years tax returns, recent pay stubs, and bank statements. Self-employed borrowers typically need two years business returns plus profit and loss statements.

Pre-approval takes 1-3 days with complete documents. Full loan closing averages 21-30 days depending on property type and loan program.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan life. Conventional loans drop PMI at 20% equity and often close faster.

Many areas around Mount Shasta qualify for USDA rural housing loans. Check specific property addresses since city limits affect eligibility.

Yes. Bank statement loans use 12-24 months deposits instead of tax returns. We also offer 1099 loans and profit-loss statement programs for business owners.

Bank statement loans work well for ski instructors and seasonal guides. We look at cash flow patterns rather than traditional W-2 income.

Rates vary by borrower profile and market conditions. Conventional loans typically offer the lowest rates, while niche programs like bank statement loans price slightly higher.

Expect 2-5% of purchase price. This includes lender fees, title insurance, escrow, and property taxes. Seller concessions can cover some costs.

Most loan programs allow gift funds from family members. You'll need a gift letter stating the money doesn't require repayment.

PMI is private mortgage insurance required on conventional loans under 20% down. You avoid it by putting 20% down or using piggyback loans.

Points make sense if you're staying long-term and can break even in 3-5 years. Most Mount Shasta buyers refinance or move before breaking even on points.

FHA 203k and conventional renovation loans fund purchase plus repairs in one loan. Properties must meet minimum habitability standards to qualify.

Jumbo loans exceed conforming limits of $806,500 in Siskiyou County. These require stronger credit and larger down payments than conventional loans.

Most programs cap DTI at 43-50%. We calculate all monthly debts divided by gross income. Higher DTI needs compensating factors like reserves or credit scores.

Yes. ITIN loans don't require Social Security numbers or US citizenship. These programs verify income through alternative documentation.

DSCR loans qualify investors based on rental income instead of personal income. The property cash flow must cover the mortgage payment.

ARMs start with fixed rates for 5, 7, or 10 years, then adjust annually. Initial rates run lower than 30-year fixed mortgages.

Second home loans require 10-20% down and proof you'll occupy the property part-time. Different rules apply than primary residences or investment properties.

Pre-qualification estimates what you might afford based on stated income. Pre-approval verifies documents and checks credit for a firm loan commitment.

Most refinances require appraisals to confirm current property value. Some streamline programs waive appraisals if you have equity and payment history.

Yes, through a cash-out or rate-term refinance in your name only. You must qualify for the full payment based on your income alone.

Bridge loans provide short-term funding between buying and selling homes. These work for buyers who need equity from their current home for the next purchase.

Hard money lends against property value, not borrower credit. These close fast but carry higher rates and shorter terms than traditional mortgages.

Construction loans fund land purchase and building costs in one package. You need detailed plans, contractor bids, and typically 20% down.

Asset depletion divides investment accounts by loan term to calculate qualifying income. Retirees with significant savings but low reported income use these programs.

VA loans require properties to meet minimum standards and appraise. Remote or off-grid homes may not qualify even if veterans are eligible.

Community Mortgages use non-traditional credit like rent and utility payments to qualify borrowers. These help buyers with limited credit history establish homeownership.

Yes. Foreign national loans don't require US citizenship or credit history. These programs need larger down payments and verify income from home countries.

A general rule puts housing at 28% of gross monthly income. We calculate exact numbers based on your income, debts, and chosen loan program.

Lock rates when you're satisfied with the number and have an accepted offer. Floating makes sense only if you can wait and rates are trending down.

You can renegotiate price, bring extra cash to close, or cancel under appraisal contingency. Some buyers split the difference with sellers.

Remote work counts as stable employment with two years history. Lenders verify your job continues post-purchase and may request employer confirmation letters.