Sebastopol Mortgage FAQs: Your Questions Answered by Local Brokers

Most loans close in 25-35 days if you have documents ready. Self-employed borrowers using bank statement programs may need an extra week for underwriting review.

Conventional loans start at 620, FHA at 580. If you're self-employed and using alternative documentation, lenders may want 660 or higher depending on the program.

Conventional loans require 3-20% depending on loan amount. With higher Sebastopol prices, expect to need $50,000-$150,000 for most single-family homes.

Yes, through bank statement loans or 1099 programs that use deposits instead of tax returns. We close these regularly for business owners in wine country.

FHA allows 3.5% down but requires mortgage insurance for life of the loan. Conventional needs higher credit but lets you drop PMI at 20% equity.

If you're borrowing over $806,500, yes. Many Sebastopol properties hit jumbo territory, which means stricter approval standards and often higher rates.

W-2 earners need two years of tax returns, pay stubs, and bank statements. Self-employed borrowers need 12-24 months of business bank statements or profit and loss statements.

Lenders analyze 12-24 months of deposits to calculate income instead of using tax returns. This works well for Sebastopol entrepreneurs who write off significant expenses.

Some outer Sebastopol areas qualify for USDA loans with zero down. Check USDA eligibility maps, as many city-limit properties won't qualify despite the rural feel.

Expect 2-5% of the loan amount, typically $10,000-$30,000 for most Sebastopol purchases. This covers appraisal, title, escrow, and lender fees.

If you're staying over 5-7 years, buying points can save money long-term. Most Sebastopol buyers prefer lower upfront costs given already high down payments.

Private mortgage insurance costs 0.3-1.5% annually when you put down less than 20%. You avoid it by hitting 20% down or using a piggyback second loan.

Yes, ITIN loans are available through specific lenders in our network. Rates run slightly higher, and you'll need 15-25% down depending on property type.

Conventional typically offers the lowest rates. Non-QM programs like bank statement loans run 1-2% higher due to flexible documentation requirements. Rates vary by borrower profile and market conditions.

DSCR loans qualify you based on rental income, not personal income. Perfect for Sebastopol investment properties or buyers with complex tax situations.

Yes, through FHA 203k or conventional renovation loans that roll repair costs into your mortgage. Many older Sebastopol homes need work that these programs finance.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we've verified income, credit, and assets—it carries weight with Sebastopol sellers.

Lenders approve loans where total housing costs stay under 43-50% of gross income. We reverse-engineer this to find your maximum purchase price based on income.

Lenders require fire insurance but not earthquake coverage. Most brokers recommend it given California seismic activity, though it's not a loan requirement.

Yes, VA loans offer zero down and competitive rates. They work for any property type in Sebastopol as long as you'll live there as your primary residence.

ARMs start with lower rates that adjust after 5, 7, or 10 years. They make sense if you plan to move or refinance before the adjustment period hits.

Expect minimum 680 credit, 10-20% down, and significant cash reserves. Jumbo lenders want to see 6-12 months of payments in the bank after closing.

Yes, but lenders require 10-20% down and scrutinize that you have a primary residence elsewhere. Rates run slightly higher than primary residence loans.

You can renegotiate price, bring more cash to close, or walk away with your deposit back. Low appraisals happen occasionally when Sebastopol buyers overpay in hot markets.

Look at APR rather than just rate—it includes fees. Also compare closing costs and whether rate is locked, since processing times affect what you actually pay.

Raw land requires 30-50% down through specialized land loans. If you're building immediately, construction loans offer better terms but need detailed project plans.

Bridge loans let you buy before selling your current home. They're expensive short-term financing but solve timing problems common with Sebastopol move-up buyers.

You'll prepay 3-6 months into an escrow account. Lenders collect monthly after that and pay your Sonoma County tax bills twice yearly on your behalf.

Only if you're refinancing. On purchases, you can ask sellers to contribute toward costs, but you'll need down payment money separate from closing funds.

Brokers shop 200+ lenders instead of offering one bank's products. This matters in Sebastopol where non-traditional income is common and specialized loan programs make deals work.

Lenders want housing costs under 43-50% of gross income. For a $750,000 purchase with 10% down, expect to need $140,000+ annual income depending on debts.

Yes, lenders count 0.5-1% of your balance as monthly payment toward debt ratios. Large student debt reduces buying power but doesn't disqualify you automatically.

Interest-only loans let you pay just interest for 5-10 years before principal payments start. They lower initial payments but build no equity early on.

Foreign nationals can buy Sebastopol property with 30-40% down and no US credit history. Lenders focus on international assets and down payment source documentation.

Yes, FHA allows up to 4 units with just 3.5% down if you live in one unit. Rental income from other units can help you qualify for the mortgage.

Portfolio ARMs are adjustable loans held by individual lenders rather than sold. They offer flexibility for borrowers with non-standard situations like multiple properties.

Most locks last 30-45 days. If you're buying new construction with longer timelines, extended locks cost extra but protect against rate increases during the build.

Recent bankruptcy or foreclosure, undisclosed debt, insufficient income for the payment, or job changes during underwriting. Credit issues need 2-4 years of clean history after resolution.

15-year loans save massive interest but double monthly payments. Most Sebastopol buyers choose 30-year terms for flexibility, then pay extra principal when cash flow allows.

Same field job changes usually work fine. Career changes or new self-employment typically need 2 years of history before lenders approve conventional financing.