Santa Rosa Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans accept 580 credit scores with 3.5% down, while conventional loans typically need 620 minimum. Self-employed programs like bank statement loans often require 660-680 for competitive rates.

FHA requires 3.5% down, conventional loans allow 3-5%, and VA loans offer zero down for qualified veterans. Jumbo loans in areas like Fountaingrove typically need 10-20% depending on property value.

Yes. Properties in Tubbs Fire zones or high-risk areas face stricter insurance requirements and possible rate adjustments. We work with lenders who understand Sonoma County fire risk and price accordingly.

Absolutely. We use 1099 loans, bank statement loans, or profit and loss programs for self-employed borrowers. Most require 12-24 months of income documentation and 10-20% down.

FHA allows lower credit scores and 3.5% down but requires mortgage insurance for life. Conventional loans need higher credit but drop PMI at 20% equity and offer better rates above 740 credit.

Conventional and FHA loans close in 21-30 days typically. Bank statement and non-QM programs add 5-10 days for underwriting. Cash-out refinances take 30-45 days due to appraisal timelines.

W-2 buyers need two years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers provide 12-24 months of bank statements or two years of 1099s and profit/loss statements.

Yes. VA loans offer zero down payment for qualified veterans with no mortgage insurance. We close VA deals across Santa Rosa from downtown condos to county parcels with well water and septic.

Conforming loans max out at $806,500 in Santa Rosa. Above that, you need a jumbo loan with stricter credit requirements and larger down payments, typically 10-20% minimum.

Yes. DSCR loans qualify based on rental income, not your tax returns. Properties must generate enough rent to cover the mortgage, typically 1.0-1.25x debt coverage ratio depending on credit.

Budget 2-5% of purchase price for closing costs including title, escrow, appraisal, and lender fees. Sonoma County transfer taxes run about 0.11% plus city transfer tax if applicable.

Yes, if you put down less than 20%. PMI costs 0.3-1.5% annually depending on credit score and down payment. It drops automatically at 22% equity or by request at 20%.

Standard FHA loans require homes to be move-in ready. For major repairs, use an FHA 203(k) renovation loan which funds purchase and rehab costs together with one mortgage.

Bank statement loans qualify self-employed borrowers using 12-24 months of personal or business deposits instead of tax returns. Ideal for 1099 workers, contractors, and business owners who write off income.

No. Rates vary by borrower profile and market conditions, not city location. Wildfire-prone properties may see slight adjustments, but your credit score and down payment matter most.

Yes. We offer foreign national loans with 20-40% down and no US credit history required. Documentation includes passport, visa, and proof of income from home country.

Brokers access 200+ wholesale lenders versus one bank's products. We shop rates and programs across lenders to find better terms, especially for self-employed buyers and unique properties.

Yes. Conventional and jumbo lenders approve properties with private wells and septic if systems pass inspection. USDA loans work for qualifying rural areas with income limits that most exceed.

Lenders want your total monthly debts including the new mortgage under 43-50% of gross income. A $600,000 loan at 7% needs roughly $9,000 monthly income with minimal other debts.

ARMs offer lower initial rates that adjust after 3, 5, 7, or 10 years. They work for buyers who plan to sell or refinance before adjustment, saving thousands in early interest.

Yes. FHA and conventional loans allow gift funds from family members with a signed letter. Donors must prove the funds came from their own accounts and aren't a loan.

A HELOC is a line of credit secured by home equity, typically up to 80-90% combined loan-to-value. Rates run 2-3% above prime and you draw funds as needed like a credit card.

Conventional loans require 2-6 months reserves for investment properties or high loan amounts. Primary homes under conforming limits typically need zero reserves unless credit is marginal.

Yes. ITIN loans work for borrowers without Social Security numbers, typically requiring 15-25% down. We work with lenders who specialize in ITIN mortgages across Sonoma County.

Bridge loans provide short-term financing to buy before selling your current home. They're expensive but solve timing gaps when you find the right property before closing your sale.

Divorce decrees showing debt responsibility matter more than credit reports. If you're liable for joint debts, lenders count them even if your ex pays. Alimony counts as income with 3+ years remaining.

Yes. FHA loans work for 2-4 unit properties if you occupy one unit. Lenders use 75% of projected rental income to offset the mortgage payment when qualifying you.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we pulled credit, verified income, and submitted to underwriting for conditional approval before you shop.

Sonoma County offers down payment assistance through CalHFA and local programs. These typically require income limits, buyer education classes, and pairing with FHA or conventional first mortgages.

Yes, if you qualify solo based on income and credit. We structure cash-out refinances to buy out ex-spouses or rate-term refinances just to remove them from title and loan.

You can renegotiate price, bring extra cash to close the gap, or cancel if you have an appraisal contingency. In competitive markets, many buyers waive this protection and risk the shortfall.

Yes. Rates fluctuate with bond markets and economic data releases. Lock your rate once in contract, typically for 30-45 days while closing. Rates vary by borrower profile and market conditions.

Yes. Lenders require 15-25% down for investment properties and use 75% of projected rental income toward qualification. You need stronger credit and reserves than primary home purchases.

Asset depletion loans qualify retirees or high-net-worth buyers using investment accounts divided by loan term. A borrower with $2 million in assets can show income without tax returns or employment.

Owned solar adds value. Leased solar creates a monthly obligation lenders count as debt, affecting qualification. PACE liens must be paid off before most conventional loan closings.