Question 1

What's the minimum credit score for a mortgage in Exeter?

Accepted Answer

FHA accepts 580. Conventional wants 620. USDA typically requires 640 for automated approval, though some lenders go lower with manual underwriting.

Question 2

How much do I need for a down payment in Exeter?

Accepted Answer

USDA requires zero down on eligible properties. FHA needs 3.5%. Conventional starts at 3% for first-time buyers, 5% for repeat buyers.

Question 3

Does Exeter qualify for USDA loans?

Accepted Answer

Most of Exeter qualifies as rural for USDA purposes. Check the property address with us—some newer developments near Highway 65 may be excluded.

Question 4

How long does mortgage approval take in Exeter?

Accepted Answer

Typical purchase closes in 25-35 days. Rural properties with well water or septic add 5-7 days for inspections and county approvals.

Question 5

What documents do I need to apply for a mortgage?

Accepted Answer

W-2 earners need two years of tax returns, recent paystubs, and two months of bank statements. Self-employed borrowers add business returns and profit-loss statements.

Question 6

Can I buy a fixer-upper in Exeter with an FHA loan?

Accepted Answer

FHA requires homes to be habitable at closing. Minor cosmetic issues pass. Major electrical, plumbing, or foundation problems need repairs first or an FHA 203(k) renovation loan.

Question 7

What are closing costs in Exeter?

Accepted Answer

Expect 2-5% of the purchase price. Includes lender fees, title insurance, escrow, and county recording. Seller credits can cover some or all of these.

Question 8

Do I need flood insurance in Exeter?

Accepted Answer

Most Exeter properties sit outside flood zones. If the appraisal shows Zone A or V designation, lenders require flood insurance regardless of down payment size.

Question 9

How does well water affect my mortgage?

Accepted Answer

Lenders require well water testing for bacteria and flow rate. Tests cost $150-300 and add a week to closing if results need remediation.

Question 10

Can I get a mortgage with a 1099 job in Exeter?

Accepted Answer

Yes. 1099 loans use your gross income from bank deposits or tax returns. Most programs want two years of 1099 history and consistent income.

Question 11

What's the difference between FHA and conventional loans?

Accepted Answer

FHA allows lower credit and smaller down payments but charges mortgage insurance for life on loans over 90% LTV. Conventional drops PMI at 78% LTV.

Question 12

Can I buy investment property in Exeter?

Accepted Answer

Conventional and DSCR loans work for investors. DSCR loans qualify you on the rental income, not your W-2. Expect 15-25% down and slightly higher rates.

Question 13

What if I'm self-employed growing citrus or running an ag business?

Accepted Answer

Bank statement loans use 12-24 months of business deposits instead of tax returns. Works well for farmers who write off significant expenses.

Question 14

How much income do I need to qualify?

Accepted Answer

Most lenders want your total debt payments below 50% of gross income. That includes your new mortgage, property taxes, insurance, and any car or credit card payments.

Question 15

Can I use gift money for my down payment?

Accepted Answer

Yes on most loan types. Donor must be a relative, and you'll need a signed gift letter stating the money doesn't require repayment.

Question 16

What's PMI and how do I avoid it?

Accepted Answer

Private mortgage insurance protects the lender when you put down less than 20%. Avoid it with 20% down, a piggyback second loan, or lender-paid PMI baked into your rate.

Question 17

Are mortgage rates lower in Exeter than bigger cities?

Accepted Answer

Rates don't vary by city. Your credit score, loan type, and down payment determine pricing. Rural properties sometimes face small add-ons for appraisal challenges.

Question 18

Can I lock my rate before finding a house?

Accepted Answer

Some lenders offer float-down locks for 30-45 days. Most buyers lock after going into contract. Locks typically last 30-60 days depending on expected closing timeline.

Question 19

What if I have student loans?

Accepted Answer

Lenders calculate either 1% of the balance or your actual payment into debt ratios. Income-driven repayment plans showing $0 monthly still get counted at 0.5-1% of the balance.

Question 20

Do I need an appraisal for a refinance?

Accepted Answer

Most refinances require one. Some conventional rate-term refinances qualify for appraisal waivers if you have strong equity and low loan-to-value.

Question 21

Can I buy a manufactured home in Exeter?

Accepted Answer

If it's on a permanent foundation with the wheels and axles removed, FHA and conventional loans work. Mobile homes on leased land need specialized lenders.

Question 22

What credit score do I need for the best rates?

Accepted Answer

740 or higher gets top-tier pricing. Every 20-point drop below that adds roughly 0.25-0.5% to your rate.

Question 23

How does septic affect my loan?

Accepted Answer

Lenders require septic inspection and certification. If the system fails inspection, sellers must repair or replace before closing or you need a renovation loan.

Question 24

Can I buy land and build a house with one loan?

Accepted Answer

Construction loans cover land purchase and building costs. You draw funds in stages as work completes, then convert to a permanent mortgage when the house is done.

Question 25

What's an adjustable-rate mortgage?

Accepted Answer

ARMs start with a fixed rate for 3, 5, 7, or 10 years, then adjust annually. Initial rates run 0.5-1% lower than 30-year fixed rates.

Question 26

Can I get a mortgage with an ITIN instead of a Social Security number?

Accepted Answer

Yes. ITIN loans work for foreign nationals and non-citizens. Expect 15-25% down and slightly higher rates than conventional loans.

Question 27

Should I pay points to lower my rate?

Accepted Answer

Paying one point costs 1% of the loan amount and typically drops your rate 0.25%. Break-even is usually 3-5 years, so only makes sense if you're staying put.

Question 28

What happens if the appraisal comes in low?

Accepted Answer

You can pay the difference in cash, renegotiate the price, or walk if your contract has an appraisal contingency. Lenders base loan amounts on the lower of price or appraised value.

Question 29

Can I refinance to pull cash out for home improvements?

Accepted Answer

Cash-out refinances let you borrow up to 80% of your home's value. The difference between your new loan and old balance comes to you at closing.

Question 30

What if I'm retired with no W-2 income?

Accepted Answer

Asset depletion loans qualify you using retirement accounts divided by the loan term. A $500K IRA can support roughly $2,000 monthly income over 360 months.

Question 31

Are there programs for first-time homebuyers in Exeter?

Accepted Answer

FHA, USDA, and conventional loans all work for first-timers. California also offers CalHFA down payment assistance, though income limits apply in Tulare County.

Question 32

How much will property taxes add to my monthly payment?

Accepted Answer

Tulare County base tax is 1% plus any local assessments. On a $350K home, expect roughly $290 monthly in taxes, though Mello-Roos or special districts can increase that.

Question 33

Can I buy a second home in Exeter as a vacation property?

Accepted Answer

Second home loans require 10% down minimum. The property must be at least 50 miles from your primary residence and you can't rent it out full-time.

Question 34

What if I have a recent bankruptcy or foreclosure?

Accepted Answer

FHA allows purchases two years after bankruptcy discharge, three years after foreclosure. Conventional wants four years for foreclosure, two for Chapter 13 bankruptcy.

Question 35

Should I get pre-approved before house hunting?

Accepted Answer

Yes. Pre-approval shows sellers you're serious and locks in your budget. Takes 24-48 hours and involves a credit pull and income verification.

Question 36

What's a DSCR loan and who needs one?

Accepted Answer

Debt Service Coverage Ratio loans qualify investors on rental income instead of personal income. Perfect for buyers with multiple properties or complex tax returns.

Question 37

Can I lock a rate now even though Fed rate cuts are expected later this year?

Accepted Answer

You can lock when you go under contract. Some lenders offer float-down options if rates drop before closing, typically for a fee or slightly higher initial rate.

Question 38

How do non-traditional income sources affect qualifying?

Accepted Answer

We have programs for crypto assets, gig income, and rental income. Documentation requirements vary—some lenders now accept verified digital asset holdings for reserves and income.

Question 39

What if I'm buying a property with citrus groves or ag land?

Accepted Answer

Some lenders treat ag parcels as investment property requiring 15-25% down. Others allow primary residence financing if you live on-site and the acreage isn't excessive.

Question 40

How does homeowners insurance cost in Exeter?

Accepted Answer

Wildfire risk affects pricing. Budget $800-1,500 annually for a standard home. Lenders require proof of coverage before closing and escrow collects the first year premium.

Exeter Mortgage FAQs: Expert Answers from Local Brokers