Question 1

What credit score do I need for a community mortgage in Petaluma?

Accepted Answer

Most community programs accept scores from 580-620. Lenders evaluate alternative credit like rent and utility payment history if traditional scores are low.

Question 2

Can I use business income to qualify?

Accepted Answer

Yes, community mortgages often accept bank statements or profit-loss statements. You typically need 12-24 months of consistent business revenue documentation.

Question 3

Do community loans have income limits in Sonoma County?

Accepted Answer

Many programs cap income at 80-120% of Area Median Income. Check specific program guidelines as limits vary by household size and loan product.

Question 4

How do community mortgages compare to FHA loans?

Accepted Answer

Both accept low down payments, but community loans often have more flexible credit and income standards. FHA requires mortgage insurance for the loan's life.

Question 5

What down payment is required?

Accepted Answer

Down payments range from 3-10% depending on the program. Some community lenders offer down payment assistance grants for qualifying Petaluma buyers.

Community Mortgages in Petaluma: Flexible Paths to Homeownership