Lindsay Mortgage FAQs: Your Questions Answered by Local California Brokers

FHA loans start at 580 with 3.5% down. Conventional loans typically need 620 minimum, though some programs accept 580 with larger down payments and compensating factors.

Lenders average your last two years of seasonal income if you show consistent work history. Bank statement loans skip tax returns entirely and underwrite deposits instead.

FHA requires 3.5%, conventional goes as low as 3%, and USDA offers zero down if the property qualifies. Investment properties need 15-25% depending on loan type.

Some outlying Lindsay areas meet USDA rural eligibility, which means zero down payment. We verify addresses against current USDA maps before you make an offer.

Standard loans close in 21-30 days. Alternative documentation adds 5-10 days for underwriting review since fewer lenders handle those programs.

Yes, 1099 loans verify income through your tax forms without needing W-2s. You'll need two years of 1099 history and filed returns showing adequate income.

Traditional loans want two years of tax returns and profit-loss statements. Bank statement loans skip that and use 12-24 months of business bank deposits.

ITIN loans serve buyers with Individual Taxpayer Identification Numbers. Rates run 0.5-1% higher than conventional, and most require 15-20% down.

FHA accepts lower credit scores and offers 3.5% down but charges lifetime mortgage insurance. Conventional needs higher credit, allows PMI removal, and costs less long-term.

Lenders review 12 or 24 months of bank deposits to calculate income instead of tax returns. This works when you write off significant business expenses.

DSCR loans allow 15-20% down on investment properties and qualify based on rental income, not your personal income. The property must cash flow adequately.

Expect 2-3% of purchase price for lender fees, title, escrow, and prepaid items. Tulare County transfer taxes add roughly $1.10 per $1,000 of sale price.

You'll pay PMI with less than 20% down, typically 0.3-1.5% of loan amount annually. PMI drops automatically once you reach 22% equity through payments or appreciation.

Homes on large parcels with agricultural use may require specialized rural lending. Standard residential loans typically cap lot size before switching to land loan requirements.

FHA allows purchase two years after bankruptcy discharge. Conventional loans require four years for Chapter 7, two years for Chapter 13 with good payment history.

Debt Service Coverage Ratio loans qualify investors based on property rental income, not personal income. They work well for Lindsay investors buying multiple rental properties.

Bridge loans let you tap equity in your current home for down payment before it sells. They cost more but prevent contingent offers in competitive situations.

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

Foreign national loans don't require U.S. credit history or residency. Expect 30-40% down, higher rates, and documentation of income from your home country.

VA loans offer zero down with no mortgage insurance for qualified veterans. Lindsay has eligible properties, and rates typically beat conventional financing.

Lenders qualify you based on liquid assets divided by loan term rather than income. This works for retirees or buyers with substantial savings but limited taxable income.

ARMs offer lower initial rates for 3, 5, 7, or 10 years, then adjust periodically. They suit buyers planning to move or refinance before the adjustment period.

Most jumbo lenders want 700 minimum credit scores and 10-20% down. Few Lindsay purchases hit jumbo thresholds since local prices stay below conforming limits.

You can't add costs to loan amount, but sellers can pay them through concessions. VA loans allow up to 4% seller concessions, conventional allows 3-9% depending on down payment.

Brokers access 200+ lenders versus one bank's products. That means better rate shopping and more approval paths for non-traditional income common in agricultural communities.

Lenders count 75% of rental income after you provide a lease agreement. You can use this to offset the mortgage payment on a multi-unit or investment property.

Denial from one lender doesn't block other options. Different lenders have unique credit overlays and specialty programs, which is why broker access to multiple sources matters.

FHA 203k and conventional renovation loans combine purchase and rehab costs into one mortgage. You need contractor bids upfront, and draws release as work completes.

Lenders want housing costs under 28% of gross income and total debt under 43%. The exact income needed depends on purchase price, down payment, and other monthly debts.

Each point costs 1% of loan amount and reduces your rate by roughly 0.25%. Points make sense if you'll keep the loan long enough for monthly savings to exceed upfront cost.

California Housing Finance Agency offers down payment assistance and reduced rates for qualified first-timers. Income limits apply, and programs combine with FHA or conventional loans.

Lenders calculate income after business write-offs, which often reduces qualifying power. Bank statement loans use gross deposits instead, typically adding back 25-50% of expenses.

Pre-qualification estimates based on what you tell us. Pre-approval requires documents, credit check, and underwriter review, giving you real buying power before house hunting.

All loan types accept gift funds from family members. You'll need a gift letter stating the money doesn't require repayment, plus documentation showing the transfer.

Property taxes of roughly 1.1-1.3% annually get escrowed into your monthly payment. Lenders include taxes and insurance when calculating whether you qualify for the loan amount.

Rate locks guarantee your rate for 30-60 days while closing. Lock when rates drop or you're satisfied with the offer, since rates vary by borrower profile and market conditions.