Mortgage FAQs for Woodlake, California Homebuyers

FHA loans start at 580 credit score with 3.5% down. Conventional loans want 620 minimum, but 640+ gets you better rates and lower costs.

FHA requires 3.5% down. Conventional loans accept 3% for first-timers. Investment properties need 15-25% depending on the loan type.

Yes, bank statement loans use 12-24 months of deposits instead of tax returns. We average your deposits and qualify you on that income.

Purchase loans close in 21-30 days with complete documents. Refinances take 30-45 days depending on appraisal turnaround in Tulare County.

Some areas around Woodlake qualify for USDA rural housing loans with zero down payment. Income limits apply based on household size and county median.

W-2 borrowers need two years tax returns, 60 days paystubs, and two months bank statements. Self-employed need two years business returns plus personal returns.

Bank statement loans solve this exact problem. We use 12-24 months of business deposits instead of tax returns that show low net income.

FHA accepts 580 credit and 3.5% down but charges mortgage insurance for life. Conventional needs 620 credit but drops PMI at 78% loan-to-value.

DSCR loans approve based on rental income, not your W-2 or tax returns. The property must generate 1.0x to 1.25x monthly rent versus mortgage payment.

Yes, FHA and conventional loans allow gifted funds from family members. You need a gift letter stating the money doesn't require repayment.

Expect 2-5% of purchase price for closing costs. This includes lender fees, title insurance, escrow, appraisal, and prepaid taxes and insurance.

Only if you plan to keep the loan 5+ years. Each point costs 1% of loan amount and drops rate by roughly 0.25%. Calculate break-even before deciding.

FHA 203k rehab loans fund purchase and repairs in one mortgage. Conventional renovation loans also work but require higher credit and down payment.

Most lenders set minimums at $75k-$100k. Below that, portfolio lenders or credit unions offer better options than conventional financing.

FHA charges upfront and monthly mortgage insurance regardless of down payment. Conventional PMI drops at 78% LTV or when you hit 20% equity through payments or appreciation.

FHA allows purchase 2 years after Chapter 7 discharge with re-established credit. Conventional loans require 4 years waiting period from discharge date.

Bank statement loans qualify self-employed borrowers using deposits instead of tax returns. Contractors, ag workers, and cash-heavy businesses use these programs.

Yes, VA loans work anywhere in California for eligible veterans. You get zero down payment, no mortgage insurance, and competitive rates regardless of location.

Lenders cap total debt at 43-50% of gross monthly income. For every $1,000 monthly income, expect roughly $400-$500 available for housing payment including taxes and insurance.

No, FHA requires owner occupancy for 12 months minimum. Use conventional financing with 15-25% down or DSCR loans for pure investment purchases.

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

You pay only interest for 10 years, then principal and interest for remaining 20 years. Payment jumps significantly after interest-only period ends.

Yes, ITIN loans work for non-citizens with taxpayer IDs. Rates run higher and down payments start at 15-20% depending on credit profile.

Jumbo loans exceed $806,500 in Tulare County for 2024. Most Woodlake properties fall below that limit and use conventional or FHA financing instead.

Lenders order appraisals to confirm property value supports loan amount. Rural areas sometimes struggle with comparable sales, which can delay closings or affect value.

Only on refinances when you have enough equity. Purchase loans require you pay costs at closing or negotiate seller credits up to 3-6% depending on loan type.

Pre-qualification is an estimate based on what you tell us. Pre-approval means we verified income, assets, and credit and submitted to underwriting for conditional approval.

Bridge loans use equity in current home as down payment on new purchase. You carry two mortgages temporarily until your old home sells, usually 6-12 months max.

Yes, if it's permanently affixed to land you own. FHA and conventional loans both work, but the home must be built after 1976 and meet HUD standards.

You can pay the difference in cash, renegotiate price with seller, or cancel the deal if you have an appraisal contingency. Lenders only loan based on appraised value.

Locks guarantee your rate for 30-60 days during loan processing. If rates drop, you're stuck unless you paid for a float-down option at application.

Non-occupant co-borrowers are allowed on conventional loans but expect higher rates and down payment requirements. FHA generally prohibits this arrangement except for family members.

Portfolio ARMs offer flexible underwriting for complex income situations. Rates adjust annually after initial fixed period, making them risky for long-term holds.

Conventional loans have no waiting period if you gain clear benefit. FHA requires 210 days since last closing and six monthly payments for cash-out refinances.

Active collections from government agencies, unpaid tax liens, and recent foreclosures stop deals immediately. Most other credit issues can be explained or resolved during underwriting.