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Petaluma Mortgage FAQ
Petaluma buyers face unique financing challenges in Sonoma County's competitive market. We broker mortgages across 200+ lenders to find programs that fit your situation.
These FAQs cover what we hear most from Petaluma clients. From downtown historic homes to westside new construction, loan requirements vary more than most buyers expect.
SRK CAPITAL brokers handle everything from conforming loans to portfolio programs for self-employed borrowers. We match your profile to lenders who actually approve Petaluma deals.
Conventional loans start at 3% down for first-time buyers. FHA requires 3.5%, while VA and USDA offer zero-down options if you qualify.
FHA approves at 580, conventional at 620. Portfolio lenders work with scores below 600 if you have strong assets or large down payments.
Standard purchases close in 30 days. Complex income structures or property issues can push timelines to 45 days.
W-2 borrowers need two years tax returns, recent pay stubs, and bank statements. Self-employed need 1099s or bank statements depending on program.
Yes, if the property meets FHA standards. Older homes sometimes need repairs before closing, which can delay timelines.
FHA allows lower credit scores and smaller down payments. Conventional offers better rates and cheaper mortgage insurance if you have strong credit.
On conventional loans, yes. FHA charges insurance regardless of down payment, and VA/USDA have no mortgage insurance.
Absolutely. Bank statement loans use 12-24 months of deposits instead of tax returns, which works better for most business owners.
Jumbo loans exceed conforming limits, currently $806,500 in Sonoma County. Many Petaluma homes hit this threshold and require jumbo financing.
Sonoma County taxes run roughly 1.1% of purchase price annually. Lenders include this in your monthly payment through escrow.
Yes, VA loans work great here with zero down payment required. You need military service history and a valid Certificate of Eligibility.
Expect 2-3% of purchase price. This covers lender fees, title insurance, escrow, and prepaid property taxes.
Only if you plan to keep the loan five years minimum. Break-even usually takes 3-5 years depending on rate reduction.
FHA allows up to four units if you occupy one. You need higher reserves and the property must meet stricter standards.
ARMs start with fixed rates for 3, 5, 7, or 10 years, then adjust annually. They work well if you plan to sell or refinance before adjustment.
Most programs cap total debts at 43-50% of gross income. Portfolio lenders sometimes go higher with compensating factors like large down payments.
FHA allows bankruptcy after two years, foreclosure after three. Conventional requires longer waiting periods unless you have documented extenuating circumstances.
DSCR loans qualify investors based on rental income, not personal income. You need properties that generate enough rent to cover the mortgage payment.
Most refinances require full appraisals. Some streamline programs skip appraisals if you have existing FHA or VA loans with strong payment history.
Yes, through foreign national loan programs. You need larger down payments, typically 30-40%, and properties must be in your name.
Pre-qualification is an estimate based on your word. Pre-approval means we verified income, assets, and credit through documentation.
You pay only interest for 10 years, then principal and interest after. Monthly payments jump significantly when interest-only period ends.
Yes, from immediate family members. You need a gift letter stating the funds don't require repayment, plus paper trail showing transfer.
Bridge loans let you buy before selling your current home. Rates run higher but avoid contingent offers in competitive markets.
Bank statement programs use deposit history instead of tax returns. They work for business owners who write off significant expenses.
No, investment properties require minimum 15-25% down. Only owner-occupied purchases qualify for 3-5% down programs.
Lenders divide your liquid assets by 360 months to create qualifying income. Retirees with investment accounts but no W-2 income use these.
Construction loans pay builders in draws as work completes. They convert to permanent mortgages once construction finishes and you get a certificate of occupancy.
Limited options exist if you're underwater. FHA streamline and VA IRRRL programs ignore current value for existing FHA/VA loans.
Portfolio ARMs come from smaller lenders who hold loans instead of selling them. They approve deals that don't fit agency guidelines.
Depends on loan type and down payment. Jumbo loans typically require 6-12 months of mortgage payments in reserves after closing.
Brokers shop rates across hundreds of lenders versus one bank's products. We match your profile to lenders who actually approve your scenario.
Yes, ITIN loan programs exist for non-citizen borrowers. You need larger down payments and documentation of income through alternative methods.
You're locked at the higher rate unless you pay to relock. Some lenders offer float-down options for a fee at time of lock.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.