Sonoma Mortgage FAQs — Local Broker Answers on Rates, Loans & Wine Country Buying

Conventional loans start at 620 credit. FHA allows 580 with 3.5% down, but most Sonoma properties price above FHA limits anyway.

Conventional requires 3% down for primary residences, 15% for second homes, 25% for investment properties. Jumbo loans typically need 10-20% depending on loan amount.

Sonoma County FHA limit is $1,089,300 for single-family homes in 2024. Most Sonoma city properties exceed this, pushing buyers to conventional or jumbo.

Probably. If your loan exceeds $766,550, you need jumbo financing. Many Sonoma properties require loans well above that threshold.

Yes. We use bank statement loans, 1099 loans, or profit-and-loss programs for winery owners, vineyard managers, and hospitality workers.

Lenders require fire insurance before closing. High-risk zones face expensive premiums or FAIR Plan coverage, which can affect your debt-to-income ratio.

W-2 earners need two years tax returns, two months bank statements, recent pay stubs. Self-employed need two years business returns and proof of business continuity.

Standard approval takes 21-30 days. Delays happen with appraisal backlogs, fire insurance quotes, or complex income documentation.

Yes, conventional loans allow 10% down on second homes. You must prove you'll occupy it part-time and have reserves to cover both properties.

Conventional loans conform to Fannie Mae limits ($766,550). Jumbo loans exceed those limits and typically require higher credit scores and larger down payments.

Fixed rates make sense if you're staying 7+ years. ARMs save money short-term but adjust after 5, 7, or 10 years based on the program.

Yes. VA loans work up to the county limit with zero down for eligible veterans. Sonoma's VA limit matches the conforming limit at $766,550.

Expect 2-5% of purchase price. Includes lender fees, title insurance, escrow, recording, and prepaid property taxes and insurance.

Yes, if you put down less than 20%. PMI costs 0.3-1.5% annually based on credit score and down payment size.

Not usually. Most investment property loans require 25% down minimum. DSCR loans focus on rental income instead of personal income.

DSCR loans approve based on rental income, not your W-2. Investors with multiple properties or irregular income use these for Wine Country rentals.

Lenders review 12-24 months of business or personal bank statements. They calculate income from deposits, usually at 50-75% of total inflows.

Yes. Foreign national loans require 20-40% down, valid passport, and US bank account. No US credit history needed.

Lower monthly payments for 5-10 years. Useful for buyers expecting income growth or planning to sell before principal payments start.

Only if you're staying 5+ years. Each point costs 1% upfront and drops your rate about 0.25%. Break-even takes time.

Yes. Construction loans fund in stages as work completes. Expect 20% down and higher rates during the build phase.

Bridge loans cover down payments when you're buying before selling. Rates run higher, but they close fast and solve timing gaps.

Most lenders cap DTI at 43-50%. That includes your new mortgage, property taxes, insurance, HOA, and all existing debt payments.

Yes. Conventional and FHA allow gifted down payments from family. You'll need a gift letter stating no repayment expected.

Pre-qualification is an estimate based on your word. Pre-approval verifies income, assets, and credit — it carries weight with Sonoma sellers.

Sometimes. Lenders review HOA budgets and reserve funds. Non-warrantable condos need portfolio lenders with stricter terms.

Yes, if you're 62+ and have significant equity. You borrow against home value and repay when you sell or pass away.

You renegotiate price, bring extra cash, or cancel with earnest money refund if you have an appraisal contingency. Lenders won't exceed appraised value.

California property tax runs about 1% of assessed value plus local bonds. Lenders escrow taxes monthly, adding roughly $700-1,500 to your payment on median homes.

Yes, once you hit 20% equity through payments or appreciation. You request cancellation, lender orders new appraisal, and PMI drops if value supports it.

FHA and VA loans are assumable. Buyers take over the seller's rate and terms, but must qualify with the lender first.

Lock if you're satisfied with the rate and closing soon. Float if you think rates will drop, but you risk increases — most locks last 30-60 days.

We shop 200+ wholesale lenders competing for your deal. Banks only offer their own rates — we find programs they don't have.

Maybe. If it's under 10 acres with minimal commercial activity, some lenders treat it as residential. Larger operations need ag or commercial loans.

Recent foreclosure, bankruptcy under two years old, or active tax liens stop most approvals. We have portfolio lenders for non-standard credit histories.

Lenders approve up to 43-50% DTI. If you earn $10,000 monthly, expect approval for $4,000-4,500 total housing and debt payments combined.

Only if you're in a FEMA flood zone. Most Sonoma properties sit outside flood zones, but creek-adjacent homes sometimes require it.

Yes. You'll need to qualify solo based on income and credit. The remaining borrower refinances into a new loan, removing the co-borrower from title and debt.

We know Wine Country insurance hurdles, appraisal timelines, and which lenders approve properties with vineyard parcels or fire history. Online lenders miss these details.

Every 1% rate increase drops buying power about 10%. At 6% vs 7%, you qualify for roughly $50,000 less on a $500,000 loan.