Frequently Asked Questions

Many foreign national programs allow closing in a U.S. entity such as an LLC, which some international buyers prefer for ownership and estate planning reasons. Availability varies by lender and state, and you should confirm the structure with your own tax and legal advisors.

Yes. Second homes and investment property are the most common uses, and rental income from the property can often support the file. Occupancy and property type affect the terms available.

Typically a valid passport, visa documentation where applicable, proof of assets and reserves held domestically or abroad, and verification of income from your home country. Documents in another language generally require certified translation.

Yes. Foreign national programs are built for buyers without a U.S. credit history. Some lenders request an international credit reference or letters from foreign banking institutions in place of a domestic report.

A foreign national loan finances United States property for buyers who are not U.S. citizens or residents. Because these borrowers usually have no domestic credit file, underwriting relies on assets, reserves, the property, and international documentation instead.

Most ITIN programs focus on owner-occupied primary residences. Some lenders extend to second homes or investment property, though availability is narrower. Confirm occupancy eligibility before making an offer.

Traditional credit scores help but are not always required. Many ITIN programs accept alternative credit built from rent, utilities, insurance, and other recurring payment histories. Your loan officer can review what you have before you apply.

Typically your ITIN documentation, government-issued identification, proof of residence, and income documentation which may take the form of W-2s, bank statements, or profit and loss records depending on how you earn. Requirements vary by lender.

Yes. Programs exist specifically for borrowers whose taxpayer identification number anchors the application in place of a Social Security number. These are portfolio programs rather than government-backed loans, so terms differ from FHA or conventional financing.

An ITIN loan is a mortgage for borrowers who file taxes using an Individual Taxpayer Identification Number rather than a Social Security number. It uses alternative credit and documentation standards to make homeownership accessible to tax-paying borrowers without an SSN.

Retirees, borrowers between roles, business owners who reinvest rather than take income, and high-net-worth buyers whose wealth sits in investments rather than salary. It is also useful when income is irregular but reserves are strong.

No. Asset depletion measures your assets to establish qualifying income. It does not require you to sell investments or draw down the accounts, so your portfolio can stay invested.

Checking, savings, brokerage, and eligible retirement accounts are commonly counted, though retirement funds are often discounted and may require the borrower to be of distribution age. Business accounts and restricted assets are treated differently.

The lender totals your eligible liquid assets and divides by a set number of months to produce a monthly income figure. The divisor and the percentage of each account type counted vary by lender and program.

An asset-based loan, sometimes called asset depletion or an asset qualifier, converts your liquid assets into a monthly qualifying income figure. It allows borrowers with substantial savings and modest reported income to qualify on their balance sheet.

Yes. Most 1099 programs cover primary residences, second homes, and investment properties, though terms and down payment expectations differ by occupancy type.

Independent contractors, gig workers, commissioned professionals, real estate agents, and consultants who receive 1099 forms rather than W-2s. Credit, assets, and the property are reviewed as they would be on any loan.

Qualification typically starts from gross 1099 earnings, with an expense factor applied to arrive at usable income. Because the calculation begins before write-offs, the result is often higher than what a tax return would support.

Most programs accept one or two years of 1099s, with two years generally producing a stronger file. Requirements vary by lender, and a shorter history can sometimes work when the contractor relationship is well established.

A 1099 income loan qualifies independent contractors using their 1099 forms rather than full tax returns. It is designed for people whose gross contractor earnings are a fairer picture of their income than their net figure after deductions.

No. Bank statement programs are built specifically to avoid tax returns, K-1s, and profit and loss schedules. Credit, assets, and the property are still fully reviewed.

Bank statement loans fit self-employed borrowers, business owners, and independent professionals who have been in business at least two years and whose tax returns do not reflect their actual cash flow. They are also useful when income has grown recently.

Both are typically accepted. Personal statements are often simpler when business income is regularly transferred to personal accounts. Business statements can work better when revenue stays in the business. Your loan officer can review both before you commit to one.

The lender reviews 12 or 24 months of statements, totals qualifying deposits, and applies an expense factor to arrive at a monthly income figure. The factor varies by lender and by business type, and your loan officer can tell you which window produces the stronger result.

A bank statement loan qualifies self-employed borrowers using deposits into their bank accounts instead of tax returns. It exists because business owners who take legitimate deductions often show income on paper that understates what they actually earn.

Some DSCR programs accept short-term rental income, using either documented history from platforms like Airbnb or a market rent projection. Treatment differs significantly between lenders, so confirm the approach before you make an offer on a property.

Yes, most DSCR programs allow closing in an LLC or other entity, which is one reason investors favor them for portfolio building. A personal guarantee is often still required. Availability varies by lender and by state.

No. DSCR programs are designed to qualify without tax returns, W-2s, pay stubs, or employment verification. Lenders still review credit, assets for down payment and reserves, and the property itself.

DSCR is calculated by dividing the property's gross monthly rent by its total monthly payment, including principal, interest, taxes, insurance, and any association dues. A result of 1.00 means rent exactly covers the payment. Minimum requirements vary by lender and program.

A DSCR loan is an investment property mortgage that qualifies the property rather than the borrower. The lender compares the rent the property produces against its total housing payment, and if the coverage is sufficient, the loan can proceed without personal income documentation.

Debt service coverage ratio measures a property's income against its debt payment. Lenders use it to judge whether the property supports the loan on its own. Required ratios differ by lender, property type, and market, and are set by the investor rather than by City First Mortgage. Our investor DSCR calculator lets you model a scenario before you apply.

Yes. Financing a building your own business occupies is a common commercial scenario, and it is underwritten differently than an investment property because the business operating in the building is part of the credit picture. Depending on the structure, SBA-eligible options may also apply. Bring your business financials along with the property details when you start the conversation.

Commercial transactions generally take longer than residential ones, often 45 to 90 days depending on property type, third-party report timing, and lender. Appraisals, environmental reports, and property condition assessments frequently drive the timeline more than the credit review does. Ordering third-party reports early is the most reliable way to protect a closing date.

Commercial files typically include two to three years of property operating statements, a current rent roll, two to three years of business and personal tax returns, a personal financial statement, entity formation documents, and a summary of your plan for the property. Purchase transactions also require the executed contract. Your loan officer will confirm the full list once the request is structured.

A residential mortgage is underwritten primarily on the borrower's personal income and credit. A commercial loan is underwritten primarily on the property itself, specifically its income, operating expenses, and the business plan behind it. Terms, amortization, and prepayment structures also differ, and commercial loans are often shorter in term than a 30-year residential mortgage.

Commercial lending covers property types that fall outside residential guidelines, including apartment buildings of five or more units, mixed-use buildings, retail centers, office space, industrial and warehouse property, and owner-occupied buildings your business operates from. Property eligibility varies by lender and by market.

At closing, you sign final loan documents including the Note, Deed of Trust or Mortgage, Closing Disclosure, and government forms. You bring a cashier's check or wire for closing costs and any down payment. The closing typically takes 30-60 minutes at a title company or attorney's office. Funds release the same day for purchases (sometimes next day for refinances due to a 3-day right of rescission).

Refinancing a mortgage usually takes about 30 to 45 days to close. The timeline depends on how quickly documents are submitted and whether an appraisal or title work takes extra time. Staying responsive to your lender helps keep the process moving smoothly.

In most cases, yes—you’ll need an appraisal to pull equity from your home. The appraisal confirms your home’s current value so the lender knows how much equity you have. Some programs may allow an appraisal waiver if recent market data supports your home’s value.

Many mortgage calculators let you include property taxes and homeowners insurance, but the amounts may not match your exact local costs. Because property taxes and insurance vary by location and property type, be sure to adjust the numbers or confirm them with your lender.

For a reverse mortgage, borrowers typically need to provide identification, proof of residency, current mortgage statements, and property tax information. Depending on the lender, additional financial records may be requested.

From application to closing, the fixed rate mortgage process usually takes 30 to 45 days. The timeline can vary based on how quickly you provide documents, how busy the lender is, and the appraisal results. Staying organized can help prevent delays.

A second home loan helps you finance a vacation home or seasonal property in addition to your primary residence, and lenders may have stricter requirements than they do for a primary home purchase.

For a jumbo loan, lenders typically require the standard income and asset documents, and they may also ask for additional records such as multiple years of tax returns, bank statements, and proof of reserves. Because jumbo loans are larger than smaller loans, the review is more detailed.

To qualify for a jumbo loan, borrowers generally need strong credit scores, a low debt-to-income ratio, and significant income. They often also need a larger down payment and strong financial reserves.

To qualify for a conventional loan, borrowers are more likely to qualify if they have higher credit scores, stable income, and manageable debt. Conventional loans may also require a larger down payment, though some allow as little as 3 percent down.

A construction loan is a short-term loan used to finance the building of a new home. The funds are released in stages, called draws, as the project progresses. Once construction is complete, it usually converts into a standard mortgage.

You would need a jumbo loan when you’re buying a home priced above the conforming loan limits set by Fannie Mae and Freddie Mac. Jumbo loans are often used in high-cost housing markets or for luxury properties.

Yes. Once you qualify, you can typically use your home’s equity funds for almost any purpose. Common uses include home improvements, paying off higher-interest debt, funding education, or covering major expenses.

Some mortgage calculators will show or let you add mortgage insurance if your down payment is less than 20%. However, because the cost of insurance varies by program, your lender will provide the most accurate figure.

A USDA loan is a government-backed mortgage for homes in eligible rural and suburban areas. It offers zero down payment and competitive interest rates, which makes it popular with first-time buyers.

FHA loans are available to borrowers with fair credit, steady income, and a manageable debt-to-income ratio. They can be especially helpful for buyers who may not qualify for conventional financing.

Closing a jumbo loan may take slightly longer than other loans, often 45 to 60 days. The larger loan size and stricter requirements can extend the process, so staying responsive to lender requests helps avoid delays.

Yes. Construction loans require an appraisal, and the appraiser reviews the building plans and estimates the future value of the completed home. This helps confirm the project is worth the financing amount.

Yes. Conventional loans require an appraisal to verify the property’s value. The home must meet market standards, and the appraised value must support the loan amount. This step is necessary to finalize approval.

A VA loan is a government-backed mortgage for eligible veterans, active-duty service members, and some surviving spouses. It offers no down payment and no private mortgage insurance.

Most borrowers are eligible for a fixed rate mortgage if they meet basic credit, income, and debt-to-income requirements. Lenders also consider your employment history and down payment amount. Your exact eligibility depends on your financial profile.

From application to closing, the mortgage process typically takes 30 to 45 days. The exact timeline depends on how quickly you provide documents and whether any issues come up with the appraisal or title. Staying organized helps keep the process on track.

Pre-qualification is an informal estimate of how much you might borrow based on stated income and credit. Pre-approval is a verified commitment based on reviewed pay stubs, tax returns, bank statements, and a credit pull. Sellers and agents take pre-approvals seriously. City First issues pre-approvals after a complete application and credit review.

A calculator can give you a starting estimate of how much house you can afford, but affordability depends on more than just your monthly payment. When deciding how much you can borrow, lenders also look at your income, debts, and credit score.

A fixed rate mortgage works by keeping the same interest rate for the entire loan term. This makes your principal and interest payments predictable, which can help with long-term budgeting. Many first-time buyers choose a fixed rate mortgage for stability and peace of mind.

A cash-out refinance replaces your current mortgage with a new one, lets you borrow more than you owe, and gives you the difference in cash. A HELOC (home equity line of credit) is a revolving line of credit, more like a credit card, that lets you access funds as needed while keeping your existing mortgage.

Yes, an appraisal is required for a reverse mortgage to determine the home’s current value. The appraisal is used to calculate how much equity is available for borrowing.

Eligibility for an adjustable rate mortgage depends on your credit, income, and debt-to-income ratio. Because payments can rise in the future, lenders may also review your financial stability more closely. Borrowers who qualify often have steady income and a good credit history.

To qualify for a renovation loan, eligibility depends on your credit, income, and debt-to-income ratio. Renovation loans are designed for borrowers who want to purchase a home that needs repairs and have the financial ability to manage the project.

For the best estimate, enter your loan amount, interest rate, loan term, and your expected property taxes and insurance into the calculator. If you’re not sure of these numbers, you can use average estimates to get a rough idea, then refine them with your lender.

For a construction loan, lenders typically require financial documents as well as building plans, a signed contract with the builder, and a detailed budget. Proof of permits may also be required.

Yes. Your loan program type can impact what kind of house you can get, because certain programs have property requirements. For example, FHA loans often require homes to meet minimum safety standards, while VA loans may have specific appraisal rules. Your loan officer can guide you on which types of homes fit your program.

To qualify for a construction loan, borrowers typically need strong credit, steady income, and detailed building plans. Lenders may also require a higher down payment than with traditional mortgages.

Closing costs affect your purchase because they are fees you pay for services such as the appraisal, title search, and lender processing. They usually range from 2% to 5% of the purchase price. Planning for these costs helps you avoid surprises when it’s time to close.

Yes. Investment property loans require an appraisal so the lender can verify the property’s value and potential rental income. This helps confirm the loan amount and the property’s ability to support investment use.

Yes, you’ll usually need an appraisal for a fixed rate mortgage. Most lenders require an appraisal before approving your loan to confirm the home’s value and ensure the property is worth at least the amount you’re borrowing. This protects both you and the lender from overpaying.

Yes. An appraisal is required for a jumbo loan because lenders need a detailed appraisal to confirm the property’s value. Since jumbo loans involve larger amounts, the appraisal is often more thorough.

A mortgage calculator typically estimates your monthly payment using the loan amount, interest rate, and loan term. Some mortgage calculators also include property taxes, homeowners insurance, and mortgage insurance to give a fuller picture of your costs.

For a USDA loan, lenders typically request pay stubs, W-2s, tax returns, bank statements, and proof of residency. Self-employed borrowers may need to provide additional records.

A Home Equity Line of Credit (HELOC) is a revolving second mortgage that lets you borrow against your home equity. You typically have a 10-year draw period to take funds as needed, paying interest only on what you use, followed by a 10-20 year repayment period. Rates are usually variable. HELOCs preserve your first-mortgage rate.

Minimum credit scores vary by loan program. FHA accepts scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no FHA-mandated minimum, though most lenders require 580-620. Conventional loans typically require 620 or higher. USDA generally requires 640. City First evaluates the full borrower profile, not just the score.

Yes, you can buy a home even if your credit is not perfect. There are programs that help borrowers with lower credit scores—FHA and VA loans may have more flexible requirements, and improving your credit before applying can open up more options.

Down payment requirements vary by loan type. VA and USDA loans offer 0% down for eligible borrowers. FHA requires 3.5% with a 580+ credit score. Conventional loans start at 3% down through HomeReady or Home Possible. Jumbo loans typically require 10% or more. Gift funds from family are allowed on most programs.

Most lenders require at least 15% to 20% equity in your home to qualify for a cash-out refinance. The exact amount you need depends on the loan program and your credit profile. Your lender will review your home’s value and your current mortgage balance to determine how much cash you can access.

Many refinances require a new appraisal to confirm your home’s current value. This helps the lender determine how much you can borrow and whether you have enough equity. However, in some cases, certain refinance programs may allow an appraisal waiver.

Considering refinancing your mortgage can help you lower your monthly payment, reduce your interest rate, or switch from an adjustable-rate loan to a fixed-rate loan. Some homeowners also refinance to shorten their loan term or to take cash out for home improvements, debt consolidation, or other needs.

The purchase process starts with a pre-approval so you know how much you can borrow. After you find a home, you make an offer and apply for the mortgage. Then the lender reviews your finances, orders an appraisal, and works with you through closing.

A renovation loan is a single loan that lets you finance both the purchase of a home and the cost of repairs or upgrades. This can be helpful if you’re buying a fixer-upper.

A construction loan process can take 45 to 60 days or more. During this time, your lender reviews your financials, construction plans, and permits before approving the loan. The timeline may also depend on your builder’s readiness.

To apply, most borrowers need recent pay stubs, W-2s or tax returns, bank statements, and a form of identification. Having these documents ready helps keep the process smooth and can help avoid delays. If you are self-employed, you may need to provide extra proof of income.

For a VA loan, you’ll need income and asset verification and your Certificate of Eligibility from the VA. You’ll also need standard documents such as tax returns, pay stubs, and bank statements.

Yes. Many loan programs allow you to use gift funds from a family member to cover part or all of your down payment. Your lender may require a signed gift letter confirming the money is not a loan. This can make buying a home more affordable for first-time buyers.

The documents needed for an ARM are the same as for other loan types: proof of income, bank statements, tax returns, and ID. If you are self-employed, you may need extra paperwork to show consistent income.

A USDA loan may take slightly longer than other loan programs to close—often 40 to 50 days—because it requires approval from both the lender and the USDA.

The FHA loan process generally takes 30 to 45 days to close. The timeline can vary based on how quickly documents are submitted and whether the property meets FHA appraisal standards.

To qualify for a HELOC, borrowers generally need enough equity in their home, good credit, and steady income. Lenders usually require that you keep at least 15% to 20% equity in the property after borrowing.

Most City First Mortgage loans close in 21 to 30 days from a complete application. Purchase loans average 25-30 days to align with contract timelines. Refinances typically close in 21-25 days. Streamline programs like VA IRRRL or FHA Streamline can close faster with reduced documentation.

For a fixed rate mortgage, typical documents include pay stubs, W-2s or tax returns, bank statements, and a form of identification. If you’re self-employed, you may also need business tax returns and profit-and-loss statements. Having these documents ready can help the process move faster.

After you’re pre-approved, you apply for the ARM once you select a home. The lender then reviews your documents, orders an appraisal, and prepares everything for closing. During this process, you’ll also learn when and how your rate can adjust in the future.

An investment property loan is a mortgage used to finance a home you plan to rent out or use to generate income. These loans often require higher down payments and stronger financial qualifications.

In the calculator, even a small change in interest rates can make a big difference in your monthly payment. Use the calculator to test different interest rate scenarios so you can see how rate changes could impact your budget.

For a renovation loan, you’ll need the standard income and asset documents, plus estimates or bids from licensed contractors. Lenders also require detailed renovation plans to approve the financing.

For an FHA loan, you’ll need to provide pay stubs, W-2s or tax returns, bank statements, and identification. If you’re self-employed, you may also need to provide business financial records.

A reverse mortgage is a loan that allows homeowners age 62 or older to convert part of their home equity into cash. Instead of making monthly payments, the loan is repaid when the home is sold or the borrower no longer lives there.