Answers to some frequently asked questions.
The waiting period for VA Loans after a foreclosure, short sale, deed-in-lieu or Chapter 7 or 11 bankruptcy is 2 years, or 7 for a non-conforming (jumbo) loan.
After Chapter 13 bankruptcy, if you have completed all payments and the bankruptcy is concluded then no additional waiting period is required, 1 year if the plan has been paid as agreed and permission is granted by the bankruptcy court.
In order to be eligible for a VA loan you must be currently in the armed services or have been discharged under any circumstance other than dishonorable and meet VA service requirements, they can be found on the VA website. If you are eligible you will need to obtain a Certificate of Eligibility.
In some cases, the answer is yes. The VA loan entitlement can be restored if the previous home has been sold and the loan was repaid in full or there may be entitlement remaining. Ask your loan officer to help you find out if you still have entitlement available.
After a foreclosure, short sale, deed-in-lieu or Chapter 7 or 11 bankruptcy, the waiting period is 3 years.
After Chapter 13 bankruptcy, 1 year of completed payments and permission from the bankruptcy court are required.
An FHA 203k loan may be used to finance the cost of $5,000 or more in repairs and/or renovations into the loan, the funds are then placed in an escrow account and paid when work is completed.
Yes, FHA loan limits are based on the loan limits set forth by Fannie Mae and Freddie Mac. Loan limits vary by county, visit our FHA Loan page for approximate loan limits or ask your loan officer about the loan limit for the county you are thinking of buying in.
Yes, we do offer streamline FHA refinances. A streamline offers the convenience of reduced paperwork and, often times, no appraisal requirement to complete. If you currently have an FHA loan, talk to your loan officer to find out if streamline refinancing is an option.
After a foreclosure, the waiting period for FHA loans is 3 years, or a minimum of 12 months under eligible extenuating circumstances.
After a short sale or deed-in-lieu of foreclosure, the waiting period is typically 3 years. However if the loan was not delinquent in the 12 months preceding the short sale the waiting period may be waived as part of the FHA Back to Work Program.
After Chapter 7 or 11 bankruptcy, the waiting period is 2 years, or 1 year with extenuating circumstances.
After Chapter 13 bankruptcy, the waiting period is 2 years, or 1 year if the plan has been paid as agreed and permission is granted by the bankruptcy court.
After a foreclosure, the waiting period for conventional loans is 7 years, or 3 years under eligible extenuating circumstances.
After a short sale or deed-in-lieu of foreclosure, the waiting period can be between 4 and 7 years, or as short as 2 with extenuating circumstances.
After Chapter 7 or 11 bankruptcy, the waiting period is 4 years, or 2 years with extenuating circumstances.
After Chapter 13 bankruptcy, the waiting period is 4 years, or 2 years with extenuating circumstances.
The interest rate is the percentage used to calculate your monthly payment; the annual percentage rate, or APR, is the total cost of the loan expressed as a percentage. The total cost of the loan includes the interest, origination fees, “points” and other costs, thereby giving the effective percentage rate if those costs were added into the interest rate. The APR does not affect your monthly payments, it is typically used as a tool to compare the total cost of loans that have the same or very close interest rates but differences in fees.
Interest rates are mostly determined by the secondary market, where mortgages are bought and sold. The flow of money through this channel is primarily what makes rates go up and down, though it can be influenced by other factors. The interest rate on your particular loan will also be affected by the loan term, loan program, your credit score and whether you choose to pay points. See more information about rates here.
Yes, federally insured or guaranteed loans (FHA, VA or USDA) must be completed by approved appraisers because each have some specific requirements that will be looked at during the appraisal process. Learn more about appraisals here.
Yes, you will receive a copy of the completed appraisal.
The cost of an appraisal varies based on the property and location.
By law, appraisers are hired from a pool of qualified appraisers at random. Neither the lender or borrower are able to choose a specific person to conduct their appraisal and the loan officer is not allowed to communicate with the appraiser.
Although you may be asked to provide additional documentation, you should have these items ready when you make your application.
Pay Stubs - Most recent 30 days of pay stubs. This is used to calculate your base income and to determine if any overtime, commission or bonuses you have received can be used as income to qualify.
Tax Returns - Previous 2 years W2s and tax returns. If self employed, both business and personal tax returns and P&L statements will be required.
Bank Statements - Typically one to two months bank statements for all accounts (make sure you have all the pages, even blank ones!) These are used to document the funds you will use for the down payment and closing costs. If you are receiving any funds as a gift from a family member, company or non-profit, be prepared to provide a gift letter and proof of the donor’s ability to give during the loan process.
Mortgage or Rent Documents - These can include mortgage statements, cancelled rent checks or property management information, whichever is applicable.
Additional Documentation - Photo ID, you may also be asked to provide 401k statements, letters of explanation for employment gaps or negative items on your credit report or non-payroll deposits.
Prequalification is a much more simplified process, typically a preliminary conversation with a loan officer in which they analyze your income, debts and assets and give an estimate of how much you could qualify for. Pre-approval is a formal process involving a credit check and review of documented income, assets and debts in which a conditional commitment in writing is issued for a maximum loan amount. Although neither are a guarantee of a loan, preapproval is a much more thorough process. See our pre-approval guide for more information.
You can apply for a mortgage online, in person or over the phone with any of our loan officers. To start the process you can call 707.432.1000, visit our office at 3700 Hilborn Road in Fairfield Ca or apply online here.