Cotati Mortgage FAQs: Your Complete Guide to Home Financing in Sonoma County

Conventional loans require 3-5% down for primary homes. FHA loans need just 3.5%, while VA and USDA loans offer zero-down options if you qualify.

FHA loans accept 580 credit scores with 3.5% down. Conventional loans typically need 620 minimum, though better rates kick in around 680.

Expect 30-45 days from application to closing on a purchase. Refinances often close faster at 25-35 days if appraisals come back quickly.

Cotati typically offers more affordable entry points than Healdsburg or Sebastopol. You get Sonoma County living without paying premium pricing for wine country addresses.

W-2 earners need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers should prepare full tax returns plus business documentation.

Absolutely. Bank statement loans use 12-24 months of deposits to qualify you without tax returns showing full income.

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

Active military, veterans, and eligible spouses qualify for VA loans with zero down payment. No mortgage insurance required regardless of down payment amount.

Expect 2-5% of the purchase price. On a $500K home, that's $10K-$25K including lender fees, title insurance, escrow, and prepaid property taxes.

Yes. Sellers can contribute up to 3% on conventional loans with less than 10% down, 6% with more down.

Jumbo loans exceed conforming limits of $806,500 in Sonoma County. They require stronger credit (typically 700+) and larger down payments (10-20%).

15-year loans save massive interest but double your monthly payment. 30-year terms keep payments manageable and preserve cash flow for other investments.

ARMs offer lower initial rates that adjust after a fixed period (5, 7, or 10 years). They make sense if you'll sell or refinance before adjustment.

DSCR loans qualify you based on rental income, not personal income. If rent covers 75-80% of the mortgage payment, you can get approved.

Yes. 1099 loans use your gross contract income without deducting business expenses like tax returns do.

Private mortgage insurance protects lenders when you put down less than 20%. Avoid it by putting 20% down or using piggyback loans.

Yes. California offers CalHFA programs with down payment assistance and competitive rates for qualified first-time buyers in Sonoma County.

FHA 203(k) loans let you finance both purchase and renovation in one loan. Conventional renovation loans work too if you have stronger credit.

You're 15 minutes to Santa Rosa and an hour to San Francisco via Highway 101. That access keeps values stable without premium city pricing.

Yes. FHA loans work on 2-4 unit properties if you occupy one unit. You need 3.5% down and rental income can help you qualify.

Rates vary by borrower profile and market conditions. Credit score, down payment, and loan type all affect your rate—shop multiple lenders.

Most loans require 2-6 months of reserves (mortgage payments saved after closing). Jumbo loans and investment properties need more.

Bridge loans let you buy before selling your current home. They're short-term (6-12 months) with higher rates but solve timing problems.

Yes. Foreign national loans don't require U.S. credit or Social Security numbers. Expect 20-30% down and slightly higher rates.

ITIN loans use Individual Taxpayer ID Numbers instead of Social Security numbers. They work for qualified borrowers without traditional documentation.

Each point costs 1% upfront and typically drops your rate 0.25%. If you'll keep the loan 5+ years, points usually pay off.

Lenders approve up to 43-50% debt-to-income ratio. If you earn $100K yearly, expect approval around $500K-$600K depending on debts.

Pre-qualification is an estimate based on stated information. Pre-approval means a lender verified your finances and committed to a specific amount.

Yes through a cash-out or rate-term refinance. You'll need to qualify solo for the full payment and have equity for closing costs.

Portfolio ARMs are held by specific lenders with flexible underwriting. They work for complex income situations that don't fit standard guidelines.

Yes. County and state programs offer grants and low-interest second loans for qualified buyers. Income limits and property price caps apply.

The university creates rental demand and brings young professionals to the area. Student housing drives some investment property interest near campus.

Home equity lines of credit let you borrow against existing equity as needed. They work well for ongoing expenses like renovations with variable costs.

Yes. Construction loans cover land purchase and building costs, then convert to permanent financing. Expect 20% down and detailed construction plans.

You pay only interest for 5-10 years, then principal and interest. They require strong credit and significant assets—used mostly by high earners.

California caps increases at 2% yearly under Prop 13. New purchases reset to 1.1-1.3% of purchase price as the baseline rate.

Lock if you're satisfied with the rate and closing within 45 days. Float only if you're gambling on rate drops and can handle volatility.

You'll need to renegotiate the price, bring extra cash to close, or walk away if you have an appraisal contingency. Low appraisals kill deals.

Yes if it's on a permanent foundation with land. FHA and conventional loans both work for manufactured homes meeting specific requirements.

We shop 200+ lenders instead of offering one bank's products. That competition gets you better rates and finds approval when captive lenders can't.