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Tulare Mortgage FAQ
Tulare buyers face unique market conditions that differ from coastal California. We've helped hundreds of Central Valley borrowers navigate financing for properties ranging from affordable starter homes to agricultural investments.
These FAQs cover what we see daily at SRK CAPITAL. From bank statement loans for self-employed farmers to USDA financing for rural properties, we address the questions Tulare buyers actually ask.
We shop 200+ wholesale lenders to find programs that fit your situation. Whether you're buying in town or outside city limits, there's likely a loan structure that works.
FHA loans require 580 for 3.5% down, or 500 with 10% down. Conventional loans typically need 620, though some lenders go to 580 for special programs.
FHA requires 3.5% down, conventional allows 3% for first-time buyers. VA and USDA offer zero-down options if you qualify.
Parts of Tulare County qualify for USDA financing with zero down. Eligibility depends on property location and household income limits.
Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer 1099 loans and P&L statement programs.
Bring 30 days of pay stubs, two years of W-2s, two months of bank statements, and photo ID. Self-employed borrowers need two years of tax returns.
Pre-approval takes 1-2 days with complete documents. Full approval to closing averages 25-35 days depending on loan type and appraisal timing.
Expect 2-5% of the purchase price. This includes lender fees, title insurance, escrow, appraisal, and county recording fees.
Yes. FHA, VA, and conventional loans allow gifted down payments from family members. You'll need a gift letter confirming the funds don't require repayment.
FHA allows lower credit scores and 3.5% down but requires mortgage insurance for life of loan. Conventional needs higher credit but drops PMI at 20% equity.
Active military, veterans, and eligible spouses qualify for VA loans with zero down and no PMI. You need a Certificate of Eligibility from the VA.
Recent bankruptcy, foreclosure, or short sale create waiting periods. Late payments hurt but don't automatically disqualify if you have compensating factors.
Yes. Conventional loans allow 15% down for rentals. DSCR loans qualify you based on property cash flow, not personal income.
Ag properties need specialized loans. We offer USDA farm loans, portfolio products, and bank statement programs that accommodate seasonal farm income.
30-year loans have lower payments and more flexibility. 15-year mortgages save significant interest but require nearly double the monthly payment.
ARMs offer lower initial rates that adjust after 5, 7, or 10 years. They work if you plan to sell or refinance before the rate adjusts.
Yes. Lender-paid PMI rolls the cost into your rate. Piggyback loans combine a first mortgage with a second to avoid PMI altogether.
Lenders order appraisals after you're in contract. The appraiser inspects the property and compares recent sales in Tulare to determine market value.
Most lenders want debt-to-income ratios under 45-50%. Your total monthly debts including the new mortgage shouldn't exceed half your gross income.
FHA 203(k) loans finance both purchase and repairs in one mortgage. Conventional renovation loans also exist but have stricter requirements.
Rate locks guarantee your interest rate for 30-60 days while you close. Lock when you're in contract and comfortable with the rate.
Lenders count 1% of the balance as monthly payment for conventional loans. FHA uses the actual payment shown on your credit report.
Federal tax liens must be paid or have payment plans. Property liens need resolution before closing. Pending lawsuits depend on circumstances and lender.
Jumbo loans exceed conforming limits ($806,500 in 2025). Most Tulare properties stay under this threshold and qualify for standard conventional financing.
Conventional typically offers the best rates for strong credit. FHA rates are competitive despite lower credit requirements. VA often beats both. Rates vary by borrower profile and market conditions.
Yes. You can withdraw from 401(k) or IRA for a home purchase. First-time buyers under 59.5 avoid the 10% penalty on up to $10,000 from IRAs.
DTI compares monthly debt payments to gross income. Lenders want to see you can afford the mortgage alongside existing obligations like car loans and credit cards.
Yes. Lenders require proof of insurance before funding. You'll need coverage equal to the replacement cost of the home with the lender named.
Yes if it's on a permanent foundation and you own the land. FHA and conventional loans work. Manufactured homes on leased land need specialized financing.
You can renegotiate the price, pay the difference in cash, or cancel the contract. Low appraisals happen when sellers overprice relative to recent sales.
Points make sense if you'll keep the loan 5+ years. Calculate the breakeven point where monthly savings exceed upfront costs.
Job changes in the same field usually work fine. Career changes need more explanation. Gaps in employment create issues unless you have valid reasons.
Pre-qualification is an estimate based on what you tell us. Pre-approval means we verified income, assets, and credit through documentation.
Lenders collect taxes monthly and hold them in escrow. Tulare County tax rates vary by assessment and special districts, typically 1-1.5% of assessed value annually.
FHA requires two years after Chapter 7 discharge or one year into Chapter 13 with timely payments. Conventional loans need four years for Chapter 7.
ITIN loans serve borrowers without Social Security numbers using Individual Taxpayer Identification Numbers. We offer these through specialized portfolio lenders.
A rough guideline is 3-4 times your annual income. Your actual amount depends on debts, credit score, down payment, and current rates.
Inspections aren't required but highly recommended. They uncover issues that affect value and safety that appraisers don't evaluate in detail.
Yes. Second homes need 10% down with conventional loans. Lenders require the property be 50+ miles from your primary residence or qualify as a vacation home.
Bridge loans provide short-term financing when you need to buy before selling your current home. They're expensive but solve timing problems between transactions.
Lenders use 75% of projected rents for investment properties. You need a lease agreement or appraisal showing market rent to count the income.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.