Sonora Mortgage FAQs: Your Questions Answered by Local Brokers

FHA loans accept 580 scores with 3.5% down. Conventional loans typically need 620 minimum, though some lenders go lower with compensating factors.

FHA requires 3.5%, conventional as low as 3%, VA and USDA allow zero down. Higher down payments help on properties lenders consider higher-risk.

Most of Tuolumne County qualifies for USDA financing with zero down. Income limits apply, currently around $103,500 for most households in this area.

Two years tax returns, two months bank statements, 30 days pay stubs, W-2s, and photo ID. Self-employed borrowers need profit and loss statements plus business bank statements.

Standard loans close in 21-30 days once you're in contract. Appraisal delays happen here because fewer appraisers cover Tuolumne County.

Lenders require fire insurance, which costs more in high-risk zones. Some properties need California FAIR Plan coverage, which adds expense but doesn't kill deals.

FHA 203(k) renovation loans work here. You finance purchase and repairs in one loan, ideal for older homes needing updates before they're livable.

FHA allows lower credit and smaller down payments but charges mortgage insurance for life on 3.5% down deals. Conventional drops PMI once you hit 20% equity.

Active military, veterans, and some spouses qualify with zero down and no PMI. VA loans work great here, no maximum purchase price in this market.

Single-family homes get best rates and terms. Manufactured homes need permanent foundations, land loans require 20-30% down, and acreage over 10 acres limits lender options.

Yes, but expect extra scrutiny. Bank statement loans work if tax returns don't show enough income—lenders use deposits instead of written-off income.

Plan for 2-5% of purchase price. Title, escrow, appraisal, and lender fees add up—sellers sometimes cover part in negotiations.

Only if you'll keep the loan past breakeven, usually 4-6 years. Many Sonora buyers refinance or move sooner, making points a bad bet.

Private mortgage insurance protects lenders when you put down less than 20%. Avoid it with 20% down, VA loans, or piggyback second mortgages.

Yes, from immediate family. You'll need a gift letter stating the money doesn't require repayment, plus paper trail showing transfer.

Rates vary by borrower profile and market conditions. Credit above 740, strong income, and 20% down get best pricing—expect additions for mountain properties.

ARMs start with lower rates fixed for 5, 7, or 10 years, then adjust annually. Good if you'll sell or refinance before adjustment starts.

Yes, with 15-25% down depending on loan type. DSCR loans skip personal income verification—approval based on rental income the property generates.

Jumbo loans exceed $806,500 in this county. Few Sonora properties hit that threshold, so most buyers use conventional conforming loans with better terms.

Lenders require septic inspections showing compliant systems. Failed inspections delay closing until repairs happen—budget for this on rural properties.

Yes, but lenders need water quality and flow tests. Contaminated or low-flow wells kill deals unless you fix issues before closing.

You renegotiate price, bring extra cash to close, or cancel. Low appraisals happen less in Sonora's limited inventory, but they derail deals when they occur.

Not required by lenders, but smart given California's seismic activity. Fire insurance is mandatory, earthquake coverage costs extra.

Most loans allow 43-50% DTI—total monthly debts divided by gross income. Higher ratios work with strong credit and reserves.

Yes, lenders count 0.5-1% of balance as monthly payment if loans are deferred. Income-driven repayment plans use actual payment amount.

Locks guarantee your rate for 30-60 days during closing. Lock when you go under contract—rates could rise before you close.

Lenders include HOA dues in debt-to-income calculations. High fees reduce buying power by limiting how much mortgage payment you can afford.

Yes, if it's on permanent foundation and titled as real property. Rates run slightly higher than stick-built homes.

Pre-qualification is an estimate based on what you tell us. Pre-approval means underwriter reviewed documents and credit—sellers take you seriously.

Chapter 7 requires 2-4 years depending on loan type. Chapter 13 allows purchase after 12 months of on-time plan payments with court approval.

Investment properties require 2-6 months PITI in bank after closing. Primary homes need reserves only on jumbo or high-DTI loans.

Not on purchases. You can ask sellers to cover costs or use lender credits from higher rates, but loan amount can't exceed purchase price plus allowed fees.

Lenders want 2-year remote work history or permanent employer policy. Recent remote arrangements trigger extra documentation proving income stability.

Land loans need 20-30% down with higher rates than home purchases. Construction loans work if you're building immediately with approved builder and plans.

Brokers shop 200+ lenders to find best fit for your situation. Banks offer only their products—works fine if you're vanilla W-2 buyer with great credit.