Mortgage questions and answers

As little as 3% on a conventional loan for first-time buyers, 3.5% on FHA, and nothing on a VA or USDA loan if you are eligible. Putting 20% down on a conventional loan removes private mortgage insurance.

A pre-qualification is a quick estimate based on what you tell us. A pre-approval means we have reviewed your credit, income and assets, and it comes with a letter that sellers and their agents take seriously. In a competitive California market, make offers with a pre-approval.

Conventional loans generally start at 620, FHA at 580 for 3.5% down, and VA lenders often look for 580 to 620. Higher scores earn better pricing, especially above 740.

Closing costs cover the lender, appraisal, title, escrow, recording and prepaid items such as insurance and interest. Lender and third-party fees are shown for each option on our live rates page, and every cost is itemized on your Loan Estimate.

Often, yes. Sellers can contribute toward your costs up to a limit set by the loan type and down payment. Your agent negotiates it as part of the offer.

Yes. Twenty percent down is not required. Conventional loans go as low as 3% down for qualified first-time buyers, FHA needs 3.5%, and VA and USDA loans can need nothing down. With less than 20% down on a conventional loan you pay private mortgage insurance until you reach 20% equity, and California and local down payment programs can help with the rest.

Often, yes. Many 401(k) plans let you borrow against your balance and repay yourself, and IRA rules allow first-time buyers to withdraw up to $10,000 without the early withdrawal penalty, though income tax may apply. Lenders will want to see the withdrawal or loan documented. Talk to your tax professional before you move retirement money.

Insurance that protects the lender on a conventional loan with less than 20% down. It is usually paid monthly, and you can ask to cancel it once your balance reaches 80% of the original value; it ends automatically at 78%. FHA loans carry their own mortgage insurance premium instead.

A fixed rate mortgage keeps the same rate and principal and interest payment for the life of the loan. An adjustable rate mortgage has a fixed rate for an opening period, such as five or seven years, then adjusts with an index plus a margin, within caps.

It depends on how long you will keep the loan. A fixed rate suits owners who plan to stay and want a payment that never changes. An ARM can start lower and suit buyers who expect to sell or refinance before the first adjustment. Mike can price both side by side for your scenario.

A loan above the conforming limit for your county. Many California counties have high-cost limits, so a jumbo starts at a higher amount here than in most of the country. See jumbo loans.

When the monthly savings repay your closing costs well before you expect to move or refinance again. Our refinance calculator shows the break-even point.

A new, larger first mortgage that pays off the old one and gives you the difference in cash. It replaces your current rate on the whole balance, which is why homeowners with a low rate often choose a HELOC instead.

Yes. Refinancing an FHA loan into a conventional loan with at least 20% equity removes monthly mortgage insurance. On a conventional loan you can also ask your servicer to cancel PMI once your balance reaches 80% of the original value, or sooner with a new appraisal if the home has gained value and the lender’s seasoning rules are met.

Usually, though some loans qualify for an appraisal waiver, and FHA Streamline and VA IRRRL refinances often need none.

Only if you choose a new 30-year term. You can pick a shorter term, such as 20 or 15 years, to keep your payoff date on track.

A home equity line of credit is a revolving line secured by your home, recorded behind your first mortgage. You draw what you need during the draw period and pay interest only on what you have drawn.

California HELOC rates start at 7.49% APR as of October 2026 for strong credit and a lower combined loan-to-value. HELOC rates are variable and follow the prime rate.

Up to 90% of your home’s value, combined with your first mortgage, in lines from $50,000 to $800,000.

If your first mortgage rate is well below today’s, a HELOC usually costs less because it leaves that rate alone. See the side-by-side comparison.

Yes. A bank statement HELOC qualifies you on deposits, and an investment property HELOC uses equity in a rental at a lower combined LTV.

Purchases typically close in 21 to 30 days with a complete file. Refinances take three to five weeks. HELOCs often close in two to four weeks.

Recent pay stubs, two years of W-2s or tax returns, two months of bank statements and a photo ID are the core. Self-employed borrowers add business returns or, for bank statement loans, 12 to 24 months of statements.

No. Our rate pricer uses no credit pull at all, and HELOC pricing starts with a soft check. A full credit report is pulled only when you apply.

A broker compares several wholesale lenders for your scenario instead of offering one bank’s programs, which often means better pricing and more loan options, with one person handling your file from start to finish. Alameda Mortgage is a direct lender with the option to broker, so one application gets you both our own programs and, if they fit better, other wholesale lenders’.

Yes. Beyond conventional, FHA, VA and jumbo loans, Alameda Mortgage arranges non-QM loans such as bank statement, DSCR and asset-based loans, plus foreign national and reverse mortgages. As a direct lender that can also broker, Mike can look past our own programs when another lender fits your situation better.

Start with the short loan inquiry, complete the full application, or call 800-801-5626 and apply by phone.