Tulelake Mortgage FAQ: Everything You Need to Know About Buying Here

Conventional and USDA loans dominate here due to the rural setting. For farms or investment properties, we use DSCR loans or bank statement programs that don't require W-2 income.

Yes, USDA loans offer 100% financing for eligible properties in rural areas like Tulelake. VA loans also require no down payment if you're a qualified veteran.

FHA loans start at 580, but rural lenders often want 620 or higher for conventional mortgages. Some bank statement programs accept scores as low as 600 for self-employed borrowers.

Lenders treat working farms differently than residential homes. If income comes from crops or livestock, you'll need two years of farm tax returns and proof the operation is profitable.

Yes, household income can't exceed 115% of the area median. For Siskiyou County, that's typically around $103,000 for a family of four as of 2024.

W-2 borrowers need two years of tax returns, recent pay stubs, and bank statements. Self-employed need two years of business returns, profit and loss statements, and proof of business continuity.

Expect 30-45 days from application to closing. Rural appraisals can add time since fewer appraisers cover Siskiyou County and comparable sales are scarce.

Yes, limited sales data makes appraisals challenging. Lenders want properties with road access, utilities, and clear title, which can be issues on older rural parcels.

Absolutely. We use 12 or 24 months of business bank deposits instead of tax returns. This works well for farmers who write off most income.

Expect 2-3% of the loan amount. On a $250,000 purchase, that's $5,000-$7,500 including appraisal, title, escrow, and lender fees.

A 30-year loan keeps payments lower, which matters in agricultural areas with variable income. Rates on 15-year loans run about 0.5% lower but double your monthly payment.

Most lenders require 5% down, though 3% programs exist for first-time buyers. Putting down 20% eliminates private mortgage insurance and improves your rate.

Yes, we have lenders who accept Individual Taxpayer Identification Numbers. You'll need 15-20% down and two years of tax filing history.

Appraisers use comparable sales within a wider radius due to limited inventory. They separate the home value from land value, which affects loan-to-value calculations.

Lenders average your last two years of income. If you work seasonal agricultural jobs, consistent employment history matters more than month-to-month fluctuations.

California has down payment assistance programs through CalHFA. These stack with FHA or conventional loans and can cover 3-3.5% of the purchase price.

FHA allows lower credit scores and just 3.5% down, but charges mortgage insurance for the loan's life. Conventional loans drop PMI at 80% loan-to-value and offer better rates above 740 credit.

Yes, DSCR loans work well for rental properties since they qualify based on rent income, not your W-2. Expect 20-25% down and slightly higher rates.

Rates vary by borrower profile and market conditions. Rural loans sometimes carry 0.125-0.25% rate premps due to limited comps and appraisal challenges.

Not always required but highly recommended on large parcels. Lenders want clear boundary documentation, especially if fences don't match recorded property lines.

Lenders require well water tests and septic inspections before closing. If either fails, you'll need repairs completed or money escrowed to satisfy loan conditions.

Yes, most loan programs accept gifts from family members. You'll need a gift letter stating the funds don't require repayment and bank statements showing the transfer.

Lenders include either your actual monthly payment or 1% of the balance in debt calculations. Income-driven repayment plans showing $0 payments still count as 0.5% of the balance.

One point costs 1% of the loan amount and typically reduces your rate by 0.25%. If you plan to stay five-plus years, points can make sense financially.

PMI protects the lender if you default with less than 20% down. You can avoid it by putting 20% down, using a piggyback loan, or choosing a VA or USDA loan.

Some lenders offer float-down locks up to 60 days. More commonly, you lock once you have a signed purchase contract to avoid rate increases during escrow.

You can renegotiate the price, bring extra cash to close the gap, or cancel using your appraisal contingency. Low appraisals happen in rural areas with limited sales data.

Yes, lenders require proof of insurance before funding. Rural properties may face higher premiums due to wildfire risk and distance from fire stations.

Absolutely. Pre-approval shows sellers you're serious and helps you understand your budget. We pull credit, verify income, and issue a commitment letter within 48 hours.

Traditional lenders want two years of tax returns. We have portfolio lenders who accept one year of returns if you worked in the same industry previously and show strong cash flow.

Keep 3-6 months of expenses after closing. Rural properties can have unexpected repair costs, and lenders like seeing reserves when approving your loan.

Yes, once you reach 20% equity through payments or appreciation, you can refinance into a no-PMI loan. Some loans drop PMI automatically at 78% loan-to-value.

Temporary buydowns reduce your rate for 1-3 years, with sellers often paying the cost. They help you qualify initially and work well if you expect income growth.

We compare rates and programs across 200+ wholesale lenders. You get broker pricing that beats retail banks, plus access to niche programs most borrowers never see.