Vallejo Mortgage FAQs: Your Questions Answered by Local Loan Experts

Most purchase loans close in 21-30 days if documents arrive quickly. Refinances often take 30-45 days due to appraisal and title work timelines.

FHA loans accept 580 credit scores with 3.5% down. Conventional loans typically require 620 minimum, though some lenders go to 580 for certain programs.

FHA requires 3.5% down, conventional allows 3%, and VA or USDA require zero down. Putting 20% down eliminates mortgage insurance on conventional loans.

Bring two years of W-2s and tax returns, 60 days of bank statements, recent pay stubs, and photo ID. Self-employed borrowers need full business tax returns plus a P&L statement.

VA loans require zero down for qualified veterans. USDA loans also offer zero down but Vallejo doesn't qualify as a USDA-eligible area due to population density.

Rates vary by borrower profile and market conditions. Your rate depends on credit score, loan type, down payment, and property location within Solano County.

30-year loans offer lower monthly payments but cost more over time. 15-year loans build equity faster and save thousands in interest if you can afford higher payments.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for life on loans over 90% LTV. Conventional drops PMI at 78% LTV and offers better rates for strong credit.

You qualify if you served 90+ consecutive active duty days or meet reserve/guard requirements. VA loans offer zero down, no PMI, and competitive rates for Solano County properties.

Expect 2-5% of the purchase price for lender fees, title insurance, escrow, and prepaid taxes. On a typical Vallejo purchase, that runs $10,000-$25,000 depending on loan size.

FHA and conventional loans allow up to 4 units if you occupy one as your primary residence. DSCR loans work for pure investment properties with no occupancy requirement.

Lenders want your total monthly debts under 43-50% of gross income. Your target income depends on home price, debts, and loan program chosen.

Most lenders require two years of business tax returns and average your income across both years. Bank statement loans offer an alternative using 12-24 months of deposits instead.

Yes, 1099 loans qualify you using gross income from 1099 forms without full tax returns. These work well for contractors with business write-offs that lower taxable income.

DSCR loans qualify based on rental income, not your personal income or tax returns. They work for investors buying Vallejo properties who don't want to document W-2 or business income.

FHA requires mortgage insurance regardless of down payment. Conventional loans require PMI under 20% down but drop it once you hit 78% LTV through payments or appreciation.

Yes, if your home has appreciated or you've paid down to 80% LTV or less. Order an appraisal and refinance into a conventional loan with no PMI.

ARMs offer lower initial rates that adjust after a fixed period like 5 or 7 years. They make sense if you plan to move or refinance before the first adjustment.

You pay only interest for an initial period, then principal and interest after. Monthly payments are lower at first but jump significantly when the interest-only period ends.

FHA 203k and conventional renovation loans let you finance purchase price plus repair costs in one loan. Hard money loans work for severe distress properties that won't pass traditional appraisals.

Recent bankruptcy requires 2-4 years of wait time depending on loan type. Foreclosures require 3-7 years, and unpaid tax liens must be resolved before closing.

Yes, ITIN loans allow non-citizens to qualify using individual taxpayer identification numbers. You'll need 12-24 months of bank statements or tax returns showing stable income.

Bank statement loans qualify you using 12 or 24 months of business or personal deposits instead of tax returns. Lenders calculate income by averaging your monthly deposits.

Points make sense if you'll keep the loan long enough to recoup the upfront cost through monthly savings. Most borrowers break even in 3-5 years depending on rate reduction.

Yes, immediate family can gift all or part of your down payment on FHA, VA, and conventional loans. You'll need a signed gift letter stating the funds don't require repayment.

Jumbo loans exceed conforming limits of $806,500 in Solano County for 2024. They require stronger credit and larger down payments but many Vallejo homes fall under this threshold.

Bridge loans let you tap equity in your current home for down payment on a new purchase. You carry both mortgages temporarily, then pay off the bridge loan when your old home sells.

Yes, lenders count either your actual payment or 0.5-1% of the balance as a monthly debt. Income-driven repayment plans showing $0 payments get treated differently by each loan program.

Portfolio ARMs are held by individual lenders rather than sold to Fannie or Freddie. They offer flexibility for unique income situations or properties that don't fit conventional guidelines.

Only if your income alone doesn't support the payment and debt ratio requirements. Co-borrowers strengthen applications but their credit and debts also count in underwriting.

FHA requires 3 years after a short sale, conventional typically wants 4 years. VA loans may approve in 2 years if you can document extenuating circumstances beyond your control.

You must occupy the home for at least 12 months first. After that year, you can convert it to a rental without violating your loan terms or occupancy agreement.

You can renegotiate the price, bring more cash to closing to cover the gap, or walk away if you have an appraisal contingency. Some buyers split the difference with sellers.

Get pre-approved, which requires submitting documents and getting underwriter review. Pre-qualification is just an estimate and carries no weight with Vallejo sellers in competitive situations.

Vallejo property taxes run roughly 1.2-1.4% of assessed value annually. Lenders collect monthly tax portions in escrow and pay your annual bill directly to the county.

Most lenders require a purchase contract before locking your rate. Float-down options let you lock early then capture a lower rate if markets improve before closing.

Brokers shop 200+ lenders to find the best rate and program for your situation. Banks only offer their own products, which may not fit your income type or property.

Yes, lenders require proof of insurance before funding your loan. Vallejo policies typically cost $1,200-$2,500 annually depending on coverage and home value.

You can cancel anytime, but you may lose your earnest money deposit unless you have active contingencies like financing or appraisal. Check your purchase agreement terms carefully.

Asset depletion loans qualify you using retirement accounts or investment balances instead of monthly income. Lenders divide assets by loan term to calculate monthly qualifying income.