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Financing

Know Your Numbers
Before You Shop

The most prepared buyers move fastest and negotiate hardest. Use our tools to understand your monthly payment, buying power, and loan options — all before you step foot in a home.

Mortgage Calculator

Estimate Your Monthly Payment

Adjust the sliders to see how price, down payment, rate, and term affect your monthly payment. This is an estimate — connect with us for a lender-verified analysis built around your situation.

Home Price$1,100,000
Down Payment20% · $220,000
Interest Rate6.75%
Loan Term30 Years
Estimated Monthly Payment
$7,254
Principal, interest, taxes & insurance (PITI)
Principal & Interest$5,707
Property Tax (est.)$1,146
Home Insurance (est.)$275
PMI$0
Loan Amount$880,000
Estimates based on current average rates. Actual rates and payments depend on credit score, loan program, and lender. Property tax estimated at 1.25% annually. Insurance estimated at 0.34% of home value annually.
Start Pre-Approval
Buying Power

What Can You
Comfortably Afford?

Before you tour a single home, knowing your true buying power changes the conversation entirely. Lenders evaluate two key ratios to determine your range — understanding them puts you in control from day one.

28%
Front-End Ratio
Your monthly housing payment (PITI) should not exceed 28% of your gross monthly income. This is the first gate most lenders apply.
36%
Back-End Ratio (DTI)
Your total monthly debt — housing + all other obligations — should stay below 36–43%. Conventional lenders prefer 36%. FHA allows up to 43–57% with strong compensating factors.
20%
Down Payment Sweet Spot
Putting 20% down eliminates PMI and immediately improves your monthly payment, your DTI, and how lenders view your application. In competitive markets like Los Angeles, that means coming prepared.
Annual Gross Income $150,000
Monthly Debt Payments ?WHAT LENDERS COUNT AS DEBT

Include the minimum monthly payment for each:

• Auto loans & leases
• Student loans (even if deferred)
• Credit card minimum payments
• Personal loans & lines of credit
• Child support / alimony
• Other financed items (furniture, medical, etc.)

Do NOT include: rent (replaced by mortgage), utilities, insurance, groceries, subscriptions, or other living expenses.

Tip: Check your credit report — the total of all minimum payments listed is what an underwriter uses.
Car, student loans, credit cards
Down Payment
Cash available to put down
Interest Rate 6.75%
Your Estimated Home Price Range
$820,000
Conservative: $740,000  ·  Stretch: $920,000
Debt-to-Income Ratio (DTI) 34%
0%28%
Front
36%
Conv.
43%
FHA
50%+
Below 36%
Conventional
36–43%
FHA / VA
43%+
Non-QM Only
Max Monthly Housing (28% Rule)$3,500
Existing Monthly Debt Payments$500
Available for Your Mortgage (PITI)$3,000
Down Payment$100,000
Estimated Loan Amount$720,000
Loan Program Recommendation
Based on your profile, a conventional loan is likely your best path — strong DTI and solid down payment position you competitively in this market.
Talk to a Lending Specialist
We'll connect you with a trusted lender for a free, private consultation — no commitment required.
Thank you — an agent will be in touch shortly.
Loan Programs

The Right Structure for Your Situation

We work with trusted lenders across the full spectrum of financing. Here are the programs our Los Angeles buyers use most — each with meaningful differences in cost, flexibility, and qualification.

Most Common
Conventional
The standard choice for buyers with good credit and at least 5% down. Competitive rates, no upfront mortgage insurance premium, and PMI drops off at 20% equity.
Min. Down Payment3–5%
Credit Score620+
PMI RequiredUnder 20% down
Low Down Payment
FHA Loan
Government-backed loans designed for first-time buyers or those with lower credit scores. More lenient qualification but requires mortgage insurance for the life of the loan.
Min. Down Payment3.5%
Credit Score580+
MIP RequiredFor life of loan
Military / VA
VA Loan
Exclusive benefit for veterans, active military, and eligible surviving spouses. Zero down payment, no PMI, and typically the lowest rates available — the best loan in America.
Min. Down Payment0%
Credit ScoreVaries
PMI RequiredNo
Luxury
Jumbo Loan
For home prices exceeding conforming loan limits ($1,249,125 in LA County for 2026). Requires strong credit and higher reserves but provides access to luxury-tier financing.
Min. Down Payment10–20%
Credit Score700+
Reserves Required6–12 months
First-Time Buyer
Down Payment Assistance
California offers several DPA programs including CalHFA, GSFA, and local city programs. These can provide grants or deferred second loans to cover part of your down payment.
Assistance AmountUp to 5%
EligibilityIncome limits apply
TypeGrant or deferred loan
Flexible
ARM (Adjustable Rate)
Lower initial rate that adjusts after a fixed period (5, 7, or 10 years). Smart for buyers who plan to sell or refinance within the fixed period, or who expect rates to decline.
Fixed Period5, 7, or 10 years
Initial RateLower than fixed
Best ForShort-term ownership
Common Questions

Financing FAQ

How much do I need for a down payment?+

It depends on the loan program. Conventional loans require as little as 3–5%, FHA requires 3.5%, VA requires 0%, and jumbo loans typically require 10–20%. For the Los Angeles area median home price of ~$1.1M, a 20% down payment would be approximately $220,000. However, many buyers successfully purchase with significantly less — we can connect you with lenders who specialize in low-down-payment programs.

What credit score do I need to buy a home?+

Minimum credit scores vary by program: FHA accepts 580+, conventional typically requires 620+, and jumbo loans usually need 700+. However, your credit score also affects your interest rate — a higher score can save you tens of thousands over the life of the loan. If your score needs work, we can recommend credit repair strategies before you apply.

What's the difference between pre-qualification and pre-approval?+

Pre-qualification is an informal estimate based on self-reported financial information. Pre-approval is a formal process where a lender verifies your income, assets, credit, and employment to issue a conditional commitment letter. In a competitive market, sellers take pre-approval letters seriously — a pre-qualification won't cut it in a multiple-offer situation.

Should I get a fixed-rate or adjustable-rate mortgage?+

Fixed-rate mortgages offer predictability — your rate and payment never change. ARMs offer a lower initial rate but adjust after the fixed period. If you plan to stay in the home long-term, fixed is usually safer. If you expect to sell or refinance within 5–7 years, an ARM could save you significantly. We can model both scenarios with your specific numbers.

What are closing costs and how much should I expect?+

Closing costs typically run 2–3% of the purchase price in California. For a $1.1M home, expect approximately $22,000–$33,000. This includes lender fees, title insurance, escrow fees, appraisal, and recording fees. In some cases, we can negotiate for the seller to cover a portion of closing costs as part of the offer terms.

Do you recommend specific lenders?+

Yes — we maintain relationships with several top-performing lenders who specialize in the greater Los Angeles market. We recommend lenders based on your specific situation (loan program, property type, timeline) and their track record of closing on time. We always encourage buyers to compare at least 2–3 lenders to ensure competitive rates.

Our Guidance

How Empower Helps You Get Financed

01
Financial Review
We discuss your budget, goals, and financial picture to recommend the right loan programs and lenders for your situation.
02
Lender Introductions
We connect you with 2–3 vetted lenders who compete for your business, ensuring you get the best rate and terms available.
03
Pre-Approval Strategy
We help you obtain a strong pre-approval letter that positions your offers to win in competitive situations.
04
Closing Coordination
We stay on top of your lender through the entire escrow process, ensuring deadlines are met and closing stays on track.
Get Started

Ready to Get Pre-Approved?

We'll connect you with lenders who specialize in the greater Los Angeles market — trusted relationships, no referral lists. Free and no obligation.

Start the Conversation

Or call us directly: (818) 848-3637