Porterville Mortgage FAQs — Your Questions Answered by Local Brokers

Most Porterville purchases close in 30-45 days if you're preapproved. Appraisals can add 5-7 days in rural pockets where comps are sparse.

FHA loans start at 580 credit, but 620 opens conventional options with better rates. Most Porterville buyers we work with are in the 620-700 range.

Yes, but lenders want two years of tax returns showing consistent profit. Seasonal ag work requires detailed documentation and often benefits from bank statement loans.

FHA requires 3.5% down, conventional allows 3% for first-timers. USDA loans offer zero down if the property qualifies outside city limits.

Properties outside city limits often qualify for USDA zero-down financing. We check eligibility on every rural Tulare County address—many surprise buyers by qualifying.

Roughly $240,000-$280,000 with 3.5% down and 620+ credit. Your actual amount depends on debts, rates, and property taxes in your specific area.

PMI applies when you put down less than 20% on conventional loans. FHA charges mortgage insurance regardless of down payment size.

Two years of tax returns, recent pay stubs, two months of bank statements, and photo ID. Self-employed borrowers need P&L statements and business bank records.

Standard FHA won't fund homes needing major repairs. FHA 203k renovation loans work, but most Porterville buyers choose hard money then refinance after repairs.

Tulare County taxes run about 1.1% annually. On a $300,000 home, expect roughly $275/month in taxes added to your mortgage payment.

FHA allows lower credit and smaller down payments but charges mortgage insurance for life. Conventional requires stronger credit but drops PMI at 20% equity.

Yes—we offer 1099 loans using bank statements or P&L instead of tax returns. Common for contractors, truckers, and ag workers paid as independent contractors.

No, but you need a broker familiar with Central Valley appraisals and ag income. We access 200+ lenders nationwide while knowing Tulare County specifics.

Plan for 2-3% of purchase price in closing costs. On a $300,000 home, expect $6,000-$9,000 in lender fees, title, escrow, and prepaid taxes.

Conventional investment loans require 15-25% down depending on credit. DSCR loans based on rental income may offer better terms for experienced investors.

DSCR loans qualify you based on rental income, not personal income. Perfect for Porterville investors buying income properties without W-2 employment.

You pay only interest for 5-10 years, then principal kicks in. Used by investors maximizing cash flow or buyers expecting income increases.

Yes—ITIN loans are available for non-citizens. Require larger down payments and higher rates, but we close these in Porterville regularly.

Bank statement loans use deposits instead of tax returns. If write-offs tank your taxable income, this program lets you qualify on actual cash flow.

Yes—eligible veterans get zero down with no PMI. VA loans are competitive in Porterville's price range and we close dozens annually in Tulare County.

FHA and VA typically run 0.125-0.25% lower than conventional. Non-QM programs like bank statement loans add 1-2% for flexibility. Rates vary by borrower profile and market conditions.

Some lenders offer 30-day float-down locks. Most buyers lock after going into contract, which protects your rate during the 30-45 day close.

You'll pay less total interest and get a lower rate. Monthly payments run 30-40% higher than 30-year loans, so income needs to support it.

Yes—lenders require proof of coverage before funding. Porterville rates vary by location, with rural areas paying more for fire coverage.

Yes—most loan types allow gifted funds from family. Lenders need a gift letter stating the money doesn't require repayment.

ARMs offer lower initial rates that adjust after 5, 7, or 10 years. Makes sense if you plan to sell or refinance before adjustment hits.

Lenders count alimony as income if you receive it, or debt if you pay it. Recent divorces require final decree and clear payment history.

Manufactured homes on permanent foundations qualify for FHA and conventional loans. Older mobiles or those on leased land need specialized financing.

Lenders still count them in your debt ratio. Conventional uses 0.5-1% of balance as monthly payment; FHA and VA have specific calculation methods.

FHA allows purchases two years after Chapter 7 discharge. Conventional requires four years. We've closed deals at minimum waiting periods with strong re-established credit.

Yes—lenders require appraisals to confirm property value. Some refinances qualify for appraisal waivers, but purchases always need them.

You can renegotiate price, bring extra cash to cover the gap, or walk away if you have an appraisal contingency. Low appraisals are rare in stable markets.

Prequalification uses soft pulls that don't affect credit. Full preapproval requires a hard inquiry but multiple mortgage inquiries within 45 days count as one.

Lenders add HOA dues to your debt-to-income ratio. High fees reduce how much house you qualify for, same as car payments or student loans.

Jumbo loans exceed conforming limits—$806,500 in 2024. Rare in Porterville where most homes fall below that threshold, but available when needed.

Yes—once you hit 20% equity through payments or appreciation. We run the numbers to see if refinancing beats waiting for automatic PMI removal.

Bridge loans let you buy before selling your current home. Useful in competitive Porterville markets when you can't make purchase contingent on sale.

Fixed rates protect you from increases if you're staying long-term. ARMs save money if you're selling or refinancing within 5-7 years.

Most mortgages allow prepayment without fees. Some hard money or portfolio loans have prepayment penalties—we flag these before you commit.

Check your credit, gather two years of tax returns and pay stubs, and save bank statements. Don't open new credit or make large purchases until after closing.