Dinuba Mortgage FAQs: Your Complete Guide to Home Financing in Tulare County

FHA loans approve at 580, but you'll get better rates at 620+. Conventional loans start at 620, though 680+ opens significantly lower pricing.

FHA requires 3.5% down, conventional allows 3%, and VA/USDA need zero down if you qualify. Investment properties require 15-25% depending on the loan.

Expect 21-30 days from application to closing with all documents ready. Delays happen when appraisals take longer or borrowers submit incomplete income proof.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 loans and P&L statement programs for self-employed buyers.

Bring two years of tax returns, two months of bank statements, 30 days of pay stubs, and two years of W-2s. Self-employed borrowers substitute business bank statements.

Most of Dinuba qualifies as USDA eligible rural housing. These loans require zero down and competitive rates if your income stays under program limits.

FHA accepts lower credit scores and smaller down payments but charges lifetime mortgage insurance. Conventional drops PMI once you hit 20% equity.

Budget 2-5% of the purchase price for closing costs. This covers appraisal, title, escrow, lender fees, and prepaid taxes and insurance.

Yes. Adding a co-borrower combines income and improves debt-to-income ratios. Both credit scores get evaluated, and the lower one determines your rate.

Bank statement loans handle seasonal income fluctuations better than traditional programs. ITIN loans work for borrowers without Social Security numbers.

Conventional loans offer the lowest rates with strong credit. Rates vary by borrower profile and market conditions, but expect non-QM loans to cost 1-2% more.

No set minimum exists. Lenders calculate debt-to-income ratio, typically capping total debts at 43-50% of gross monthly income depending on loan type.

Yes. DSCR loans don't require income verification and approve based on rental cash flow. Expect 20-25% down and slightly higher rates than owner-occupied.

Most condos qualify for FHA and conventional loans if the HOA meets lender requirements. Some non-warrantable condos need portfolio or jumbo financing.

You'll need to cover the gap between purchase price and appraised value in cash. Alternatively, renegotiate the price or walk away if contingencies allow.

PMI costs 0.3-1.5% annually on loans below 20% down. Once you reach 20% equity through payments or appreciation, you can request PMI removal.

FHA allows purchases two years after bankruptcy discharge with re-established credit. Conventional loans require four years for Chapter 7, two for Chapter 13.

DSCR loans approve investors based on rental income, not personal income. If the property cash flows at 1.0x or higher, you qualify regardless of tax returns.

Most primary residence loans don't require reserves. Investment properties typically need 2-6 months of mortgage payments in savings after closing.

ARMs start with lower fixed rates for 5, 7, or 10 years, then adjust annually. They make sense if you plan to sell or refinance before adjustment.

Yes on FHA, conventional, and VA loans. The donor must provide a gift letter stating funds don't require repayment, plus proof of transfer.

ITIN loans serve borrowers with Individual Taxpayer ID Numbers instead of Social Security numbers. Requirements mirror conventional loans but with alternative documentation.

Lenders divide total monthly debts by gross income. Conventional loans cap this at 43-50%, while FHA stretches to 56.9% with compensating factors like high credit.

FHA 203k and conventional renovation loans let you finance purchase plus repairs in one mortgage. Construction loans work for ground-up builds or major renovations.

Pre-qualification estimates what you might afford based on stated income. Pre-approval involves credit checks and document verification, giving you a conditional commitment.

Yes. VA loans require zero down for eligible veterans and offer competitive rates without mortgage insurance. The property must meet VA appraisal standards.

You pay only interest for 5-10 years, lowering initial payments. Principal payments start after the interest-only period ends, increasing your monthly cost significantly.

Yes. Once you reach 20% equity, refinance to eliminate PMI. Alternatively, request PMI cancellation on conventional loans at 20% equity or 22% automatically.

Bank statement loans use 12-24 months of business or personal deposits to prove income instead of tax returns. Self-employed borrowers who write off income use these.

Bridge loans provide short-term financing to buy before selling your current home. Expect higher rates and 6-12 month terms with balloon payments due at maturity.

Active bankruptcies, recent foreclosures under waiting periods, unpaid tax liens, and unresolved collections can block approval. Disputed collections sometimes get overlooked.

Yes. Jumbo loans exceed conforming limits and typically require 680+ credit and 10-20% down. Rates compete with conventional on strong borrower profiles.

Lenders want two years in the same field, though job changes within your industry are fine. Gaps over six months require written explanations.

Asset depletion loans qualify borrowers using investment accounts instead of income. Lenders divide total assets by 360 months to calculate qualifying income.

Yes. Each point costs 1% of the loan amount and typically lowers your rate by 0.25%. Points make sense if you keep the loan past break-even, usually 3-5 years.

The lender orders an appraisal, verifies employment and assets, and sends conditions to clear before closing. Your broker manages this process and chases down requirements.

Only if the property sits in a FEMA flood zone. Your lender orders a flood certification during underwriting to determine if flood insurance is mandatory.

Lenders escrow property taxes and insurance, spreading the annual cost across 12 months. Tulare County tax rates factor into your total monthly housing payment calculation.

FHA and VA loans are assumable if the lender approves you. Assuming a low-rate loan can save significantly when current rates exceed the existing loan rate.

Portfolio ARMs are held by individual lenders with flexible guidelines. They work for complex income situations or non-standard properties that don't fit agency boxes.