The Standard Route, When Your Income Documents Cleanly
This is the conventional path: W-2s, pay stubs, tax returns. If your income documents well and your credit is clean, this is almost always the cheapest way to borrow and the first thing we check.
Available in California only. Owner-occupied home loans are originated in California. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.
At a glance
- Income documentation
- W-2s, pay stubs, tax returns
- Credit floor
- 620 general
- Typical close
- 30 to 45 days from contract
- Lender panel
- 20+
Who this fits
You are employed with steady, verifiable income
You are buying your first home
You are self-employed and your tax returns genuinely do support the loan
You are refinancing and nothing about your income has changed
Cost matters more to you than convenience
You need the lowest down payment available
Who this does not fit
You are self-employed and your deductions suppress your qualifying income. This is the most common decline we see, and it is the reason bank statement, profit-and-loss and DSCR exist.
You have a recent bankruptcy, foreclosure, or short sale still inside conventional waiting periods. Non-QM seasons sooner.
You are an investor at the conventional financed-property limit. DSCR has no limit.
You need to close in days. Hard money is the speed product.
Your property is outside California. This is consumer mortgage lending and the license is a California license.
How qualification works
The most standardized underwriting there is. We verify your income from W-2s, pay stubs, and tax returns, and confirm employment directly with your employer. If you are self-employed, income is calculated from your returns.
Debt-to-income
Then debt-to-income: all your monthly obligations including the new payment, measured against gross monthly income. This is what limits most borrowers.
Then credit — 620 as a general floor, though it varies by program. Then assets: your down payment and reserves need to be sourced and seasoned. Then the property: appraised value and condition.
Down payment assistance
Less down payment is required here than on any other program on this site.
We place CalHFA and FHA assistance programs. Available in California only. There is more detail on the Down Payment Assistance page.
Combined with a down payment assistance program, up to 100% of the purchase price can be covered. That is a first mortgage plus a separate assistance second mortgage — not a single loan covering the whole price — and it depends on your eligibility for the assistance program, which has its own income, price and occupancy rules. It is subject to program availability and approval.
What you will need
Income
- Two years of W-2s.
- Recent pay stubs.
- Two years of personal tax returns with all schedules.
- Business returns and K-1s if self-employed.
- Verification of employment.
Assets and credit
- Two months of bank and asset statements.
- Credit report.
- A gift letter and donor documentation if any of your funds are gifted.
Identity and property
- Photo ID.
- The purchase contract or your current mortgage statement.
- Appraisal and insurance.
A note on condominiums. On a condo, the project gets underwritten as well as you do — the HOA budget, reserves, owner-occupancy ratio, and any litigation. You can be fully approved and still be blocked by the building. We check this early, because finding out late is a wasted escrow.
The honest trade-offs
What you get
When you qualify, this is the best economic outcome available: lowest cost, lowest down payment, long fixed terms, no prepayment penalties, and the widest choice of lenders — so if one declines, there are others.
What it costs
The cost is paperwork, strict debt-to-income limits, and long waiting periods after a credit event. It is the least flexible option on unusual income, unusual property, or unusual circumstances. And it is far slower than hard money.
Work out the monthly payment
Price, down payment, the rate you have been quoted, term, taxes, insurance and HOA.
Estimated monthly payment
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Fill in the home price, the rate and the term. The payment updates as you type.
- Loan amount
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- Principal and interest
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For illustrative and educational purposes only. Results produced by this calculator perform arithmetic based solely on numbers you enter and do not reflect actual loan offers, interest rate quotes, or commitments to lend. Actual loan terms, payments, interest rates, and approval depend on complete underwriting, credit review, property valuation, and lender guidelines. Loankey.io arranges loans through third-party lenders; loans are not funded directly by Loankey.io.
Process and timeline
Before you proceed
Scenario analysis.
Income, credit, what you have for a down payment, and whether an assistance program is worth checking your eligibility for.
Lender analysis.
Placed from a panel of 20+.
Application to closing
- Application
- Documents
- Appraisal
- Underwriting
- Closing
Application, documents, appraisal, underwriting, closing. Typically 30 to 45 days from contract, depending on the appraisal and how quickly conditions are satisfied. Nobody can honestly promise a specific date in advance.
Frequently Asked Questions
What documents will I actually need?
Two years of W-2s and tax returns with all schedules, recent pay stubs, two months of bank and asset statements, photo identification, and the purchase contract. Self-employed borrowers add business returns and K-1s.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a preliminary view based on what you tell us. Pre-approval is documented and verified. In a competitive market, a seller takes a pre-approval seriously and largely ignores a pre-qualification — so get pre-approved before you make offers.
How long does a purchase take?
Typically 30 to 45 days from contract, depending on the appraisal and how quickly conditions are satisfied. Nobody can honestly promise a specific date in advance.
What credit score do I need?
620 as a general floor, though it varies by program.
How much down payment do I need?
Less than any other program here. For borrowers who qualify under a down payment assistance program, up to 100% of the purchase price can be covered — a first mortgage plus a separate assistance second, not a single 100% loan — subject to program eligibility, availability and approval. We place CalHFA and FHA programs, in California only. Investment property requires a larger down payment.
Can I use gift funds?
Generally yes, with a gift letter and documentation of the source. The donor will be asked for a bank statement, which surprises families — warn them early.
What is debt-to-income and why does it matter?
Your total monthly obligations, including the new mortgage payment, divided by your gross monthly income. It is the constraint that stops most conventional borrowers, more often than credit or down payment.
Will paying off a card help me qualify?
Sometimes substantially. It is worth asking before you apply rather than after a decline — the answer depends on the specific balances and payments.
Does applying hurt my credit?
A mortgage inquiry has a modest effect, and multiple mortgage inquiries within a short window are generally treated as a single event. Shopping around does not penalize you.
I am self-employed. Can I still use this?
Yes, if your returns support the loan. It is worth checking first, because when it works it is usually the cheapest option available to you.
What if I am buying a condominium?
The building is underwritten as well as you are — HOA budget, reserves, owner-occupancy ratio, litigation. You can be fully approved and still blocked by the project. We check this early, because discovering it late wastes an escrow.
Can I get this on an investment property?
Yes, with a larger down payment, more reserves, and tighter credit than an owner-occupied purchase — up to 80% of value. The investor route is covered on the Investor Financing hub.
Is there a prepayment penalty?
Not on conventional loans. You can sell or refinance whenever you like.
Is this available outside California?
No. Owner-occupied home loans are originated in California only.
What happens if I am declined?
That is what the other programs exist for. A conventional decline is a starting point, not an ending — and the useful part is understanding exactly which guideline you missed, because that determines what works instead.
Do you fund these yourselves?
No. We are a brokered business and place the file with the lender whose program fits it.
What happens next
The whole business-purpose family, if the next purchase is an investment.
Pairs with the first mortgage
The assistance programs that pair with the first mortgage.
You are here
Full Documentation
The standard route, when your income documents cleanly.
Once you own it
Once you own it, the line against the equity you build.
The first rental after the home you live in, qualified on the rent rather than your income.
Request a Scenario Analysis
Tell us how your income is earned and what you have for a down payment. If conventional is the cheapest route for you, that is what we will say.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Down payment assistance programs are third-party programs with their own eligibility rules, and availability is subject to change. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.