Benicia Mortgage FAQs: Your Questions Answered by Local Brokers

Conventional loans start at 620, FHA at 580. Most Benicia sellers prefer conventional financing, which means 620 is your practical minimum for competitive offers.

FHA requires 3.5%, conventional starts at 3% for first-time buyers. VA and USDA loans require zero down if you qualify.

Pre-approval takes 1-2 days. Full approval and closing runs 21-30 days for most purchase loans with complete documentation.

Yes. Benicia sellers won't take offers seriously without pre-approval letters from a real lender.

W-2 buyers need two years tax returns, 60 days paystubs, and 60 days bank statements. Self-employed? Add business tax returns and year-to-date P&L.

Yes. Bank statement loans use 12-24 months deposits instead of tax returns, which works better for most business owners.

We shop 200+ lenders for your best rate and program. Banks only offer their own products, which limits your options.

Conventional wins if you have 5% down and 680+ credit. FHA costs more long-term due to lifetime mortgage insurance.

Pre-qualification is an estimate without verification. Pre-approval means we've pulled credit and reviewed your actual documents.

Base rate is 1% of purchase price, plus local assessments. Your lender collects monthly and pays annually through escrow.

Yes. Some lenders offer lender-paid PMI programs that roll the cost into a slightly higher rate instead.

Areas with townhomes and condos near Highway 780 offer lower entry points. Waterfront properties command premium pricing.

Yes. Zero down and no PMI makes VA unbeatable if you qualify, and Benicia sellers generally accept them.

Expect 2-3% of loan amount. That includes lender fees, title, escrow, and prepaid taxes and insurance.

Yes, up to 3% on conventional loans and 6% on FHA. You negotiate this as part of your purchase offer.

Only if you're keeping the loan 5+ years. Each point costs 1% of loan amount and drops your rate roughly 0.25%.

DSCR loans qualify based on rental income, not your W-2. Investors buying Benicia rental properties use these to avoid income verification.

Yes. Most programs allow gifts from family, documented with a gift letter stating no repayment required.

ARMs start with a fixed period like 5 or 7 years, then adjust annually. Initial rates run 0.5-1% lower than 30-year fixed.

Most jumbo lenders want 700 minimum, some require 720. Benicia has properties over conforming limits that need jumbo financing.

No. Investment properties require 15-25% down on conventional loans. DSCR programs start at 20% down minimum.

These use 12-24 months of business deposits instead of tax returns. Contractors, 1099 workers, and business owners with write-offs use these.

Conventional requires 7 years, FHA 3 years. VA can be 2 years with extenuating circumstances documented.

Yes. ITIN loans work for foreign nationals and those without SSNs, though rates run slightly higher.

You'll save massive interest over the loan term and build equity faster. Monthly payments run 40-50% higher than 30-year terms.

Most programs cap at 43-50% DTI. That's your monthly debts divided by gross monthly income, including the new mortgage payment.

Yes, but most loans require the home livable at closing. FHA 203k and conventional renovation loans let you finance repairs.

You pay only interest for 10 years, then principal and interest after. Monthly payments start 30% lower but you build zero equity initially.

If you're in a flood zone, lenders require it. Check FEMA maps before making an offer on waterfront properties.

Some lenders offer float-down locks up to 90 days. Most locks happen after you have a signed purchase contract.

You can pay the difference in cash, renegotiate price, or walk if you have an appraisal contingency. Low appraisals kill deals.

Pay off high-interest cards first. Don't close accounts, as that can hurt your credit score right before you need it.

Lenders include HOA fees in your debt-to-income ratio. Benicia has several HOA communities where monthly fees range widely.

FHA and VA loans are assumable if you qualify. Rate assumptions work great in rising rate environments if the seller has a low rate.

Portfolio lenders keep the loan instead of selling it. This means more flexibility on credit, income documentation, and property condition.

Cash-out refis take 30-45 days. You need 20% equity remaining after the new loan, and rates run higher than purchase loans.

Bridge loans let you buy before selling your current home. They're expensive short-term financing meant for 6-12 months maximum.

Yes. Lenders use Social Security, pensions, and investment income. Asset depletion loans work if you have substantial savings but limited monthly income.

You're not officially late until day 16. After 30 days, it hits your credit report and damages your score significantly.