Dixon Mortgage FAQs: Expert Answers from Local Brokers

FHA loans start at 580 for 3.5% down, or 500 with 10% down. Conventional loans typically need 620 minimum, though some lenders want 640 for investment properties.

FHA requires 3.5% down, conventional loans allow 3-5% for primary homes. Investment properties need 15-25% depending on the loan program and your credit profile.

Rates vary by borrower profile and market conditions. Your rate depends on credit score, down payment, loan type, and whether you buy points at closing.

USDA loans offer zero down for eligible rural areas near Dixon. VA loans also require no down payment if you're a qualified veteran or active military.

Most purchase loans close in 21-30 days. Cash-out refinances take 30-45 days due to additional underwriting steps required by most lenders.

W-2 earners need two years of tax returns, recent pay stubs, and two months of bank statements. Self-employed borrowers add business tax returns and a year-to-date profit and loss statement.

Dixon offers more affordable entry points than Vacaville or Fairfield. FHA loans work well here, and commute times to Sacramento or Bay Area jobs stay manageable.

FHA allows lower credit scores and 3.5% down but charges mortgage insurance for life of the loan. Conventional loans drop PMI at 20% equity and offer better rates for strong credit.

You pay PMI on conventional loans under 20% down until you hit 20% equity. FHA charges upfront and monthly mortgage insurance regardless of down payment size.

Bank statement loans work great for self-employed buyers who write off significant business expenses. We analyze 12-24 months of deposits instead of tax returns.

Expect 2-5% of the purchase price for closing costs. This includes lender fees, title insurance, escrow fees, and prepaid property taxes and insurance.

FHA requires owner occupancy, so it won't work for pure investments. Look at conventional loans with 15% down or DSCR loans that qualify based on rental income.

DSCR loans qualify you based on rental income, not personal income. They work for investors buying Dixon rentals who don't want to provide tax returns or pay stubs.

Lenders average two years of tax returns to calculate income. If you write off heavy expenses, bank statement or 1099 loans might get you approved for more.

ITIN loans are available through specialized lenders. You need 15-20% down, 12 months of housing payment history, and proof of income through pay stubs or bank statements.

Jumbo loans exceed the conforming limit of $806,500 in Solano County. Most Dixon homes fall below this, but larger properties or new construction might require jumbo financing.

15-year loans save massive interest but double your monthly payment. Most Dixon buyers choose 30-year terms for lower payments and better cash flow flexibility.

ARMs offer lower initial rates that adjust after a fixed period. They work if you plan to sell or refinance within 5-7 years, common for Dixon buyers relocating for work.

You can't roll costs into a purchase loan. Sellers can pay your costs through concessions, or you can take a slightly higher rate for lender credits.

Buying points lowers your interest rate permanently. It makes sense if you keep the loan 5+ years, less common for Dixon buyers who often refinance or relocate.

Lenders want your total monthly debts under 43-50% of gross income. For a $400K home with 5% down, expect to need roughly $75K-$85K annual income.

FHA 203k and conventional renovation loans let you finance purchase plus repairs in one loan. Properties must meet minimum safety standards to qualify for standard mortgages.

Rate locks guarantee your rate for 30-60 days while you close. Lock when you're in contract and comfortable with the rate, since locks cost money to extend.

Veterans, active military, and eligible spouses qualify. VA loans offer zero down, no PMI, and competitive rates, making them excellent for Dixon buyers who qualify.

Most loan programs allow gifted down payments from family members. You need a gift letter stating the money doesn't require repayment, plus documentation of the transfer.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we verified your income, assets, and credit through documentation and underwriting review.

DTI divides monthly debts by gross income. Most loans want 43-50% maximum, though FHA and VA sometimes go higher with strong credit and reserves.

Student loans count in your DTI calculation. Lenders use either 1% of the balance or your actual payment, whichever shows on your credit report.

FHA works down to 580, or 500 with 10% down. Below that, you need portfolio lenders or time to rebuild credit before qualifying for standard programs.

Lenders collect property taxes monthly and hold them in escrow. Dixon's tax rate runs roughly 1.1-1.3% of assessed value, paid in two installments annually.

Most lenders want two years in the same field. Job changes for career advancement in the same industry usually work, but switching careers creates underwriting problems.

Portfolio ARMs offer flexibility for borrowers with complex income or credit situations. They adjust after an initial period and work well for short-term ownership plans.

All lenders require homeowners insurance before funding. You need a paid policy and proof of coverage, which gets escrowed monthly in your mortgage payment.

You pay only interest for 5-10 years, then principal kicks in. These work for high-income earners who want lower initial payments or expect income growth.

Construction loans fund in draws as the build progresses. You need 20-25% down, strong credit, detailed plans, and a licensed contractor with proper insurance.

Bridge loans let you buy before selling your current home. They're expensive short-term financing, best for buyers certain their home will sell within six months.

Chapter 7 requires two years waiting for FHA, four for conventional. Chapter 13 needs 12 months of on-time payments and court approval to incur new debt.

Foreign national loans require 20-30% down and don't need US credit history or Social Security numbers. We use passport identification and international income documentation.

Asset depletion qualifies you based on liquid assets divided by loan term. Retirees or trust fund buyers with assets but low reported income use this program.

Brokers shop 200+ lenders to find your best rate and program. Banks only offer their own products, which might not fit your situation or be competitively priced.