Farmersville Mortgage FAQs – Your Questions Answered by Local Brokers

Most conventional loans need 620 minimum, but FHA accepts 580 with 3.5% down. Some portfolio lenders we work with approve borrowers at 550 for strong compensating factors.

FHA requires 3.5%, conventional loans allow 3% down, and VA/USDA offer zero down for qualified buyers. Jumbo loans typically need 10-20% depending on the lender.

Yes, most of Farmersville qualifies as a USDA-eligible rural area. These loans offer zero down payment for buyers meeting income limits set by the program.

Standard purchases close in 25-35 days from accepted offer. Cash-out refinances often take 30-40 days due to appraisal timelines in rural areas.

Yes, but documentation varies by program. Bank statement loans use 12-24 months of deposits instead of tax returns, which works better for many contractors and business owners.

W-2 employees need pay stubs, tax returns, and bank statements. Self-employed borrowers provide business bank statements or P&L statements depending on the loan program.

Yes, some lenders approve ag workers with seasonal income using 12-month average earnings. Bank statement loans work well for farm contractors with variable income throughout the year.

FHA allows lower credit scores and 3.5% down but requires mortgage insurance for the loan life. Conventional loans drop PMI at 20% equity and offer better rates above 680 credit.

FHA 203k and Fannie Mae HomeStyle loans bundle purchase price and renovation costs into one mortgage. Hard money loans work for investors planning quick flips.

Tulare County assesses property taxes at roughly 1.1% of purchase price annually. Buyers pay prorated taxes at closing, then annual installments in November and February.

Total closing costs run 2-5% of loan amount, including lender fees, title insurance, escrow, and appraisal. FHA and VA loans allow sellers to contribute up to 6% toward buyer costs.

Yes, most loan programs accept gift funds from family members with a signed letter. The donor must prove funds came from their own accounts, not borrowed money.

Private mortgage insurance costs 0.3-1.5% annually on loans above 80% LTV. You avoid it by putting 20% down, using VA loans, or taking a piggyback second mortgage.

Veterans, active military, and some surviving spouses qualify for VA loans with zero down and no PMI. You need a Certificate of Eligibility and 580+ credit score minimum.

Investment properties require 15-25% down with higher interest rates. DSCR loans approve based on rental income rather than your personal tax returns.

Yes, ITIN loans require 15-20% down and documented income through bank statements or pay stubs. These portfolio loans have higher rates than conventional financing.

Debt Service Coverage Ratio loans approve investors based on property rental income, not personal income. They work well for buyers with multiple rentals or complex tax returns.

15-year loans save substantial interest but double your monthly payment. Most Farmersville buyers choose 30-year terms for lower payments and investment flexibility.

ARMs offer lower initial rates for 5, 7, or 10 years before adjusting annually. They work for buyers planning to sell or refinance before the first adjustment.

Yes, if the manufactured home sits on a permanent foundation with land ownership. Chattel loans for non-land-owned mobile homes have higher rates and shorter terms.

Lenders analyze 12-24 months of business or personal bank deposits to calculate income. You typically need 10-20% down and 640+ credit for approval.

Brokers access 200+ wholesale lenders competing for your loan, not just one bank's guidelines. We match complex income situations to lenders who actually approve them.

Yes, through a rate-and-term refinance that qualifies you solo based on income and credit. You must afford the payment independently and have sufficient equity.

Bridge loans provide short-term financing to buy before selling your current home. They typically last 6-12 months with higher rates until you close on the sale.

Most lenders cap DTI at 43-50%, meaning your monthly debts can't exceed that percentage of gross income. Paying down credit cards and car loans improves approval odds.

Yes, you can deduct interest on mortgages up to $750,000 for primary and second homes combined. Consult a tax advisor for your specific situation.

Lenders provide adverse action letters explaining denial reasons, typically credit, income, or employment issues. Brokers often find alternative lenders with different approval criteria.

Discount points cost 1% of loan amount per 0.25% rate reduction. They make sense if you plan to keep the loan long enough to recoup the upfront cost.

You pay only interest for 5-10 years, then principal and interest for the remaining term. These suit investors prioritizing cash flow or buyers expecting income increases.

Cash-out refi replaces your mortgage with a larger loan, giving you the difference in cash. Borrowers use proceeds for renovations, debt consolidation, or investment properties.

Yes, construction-to-permanent loans cover land, building costs, and convert to a standard mortgage after completion. You need detailed plans, contractor bids, and 20% down typically.

Rate locks guarantee your rate for 30-60 days during closing. Lock when you have an accepted offer and feel comfortable with current rates.

You can negotiate a lower price, bring extra cash to closing, or cancel the deal if you have an appraisal contingency. Some lenders allow second appraisals.

Yes, lenders require proof of insurance coverage before funding your loan. Tulare County properties need adequate fire coverage given wildfire risks in California.

FHA allows loans 2 years after Chapter 7 bankruptcy or 3 years after foreclosure. Conventional loans require 4-7 year waiting periods depending on circumstances.