Process & Qualification
How do I get pre-approved for a mortgage?+
Pre-approval starts with a conversation about your income, assets, credit, and what you're trying to buy. From there, I collect documentation, including pay stubs, tax returns, bank statements, and a few other items depending on your situation, and submit your file to underwriting. Most of my clients get a pre-approval letter within 24 to 48 hours. The letter tells sellers and agents exactly how much you're qualified to borrow and shows them you're a serious buyer. You can apply directly at my Rate profile or call me and we'll figure out the fastest path for your situation.
What credit score do I need to qualify for a home loan?+
It depends on the loan type. For a conventional loan, most lenders want at least a 620, but you'll get better pricing at 740 and above. FHA loans go as low as 580 with 3.5% down, and sometimes lower with a larger down payment. VA loans don't have a hard minimum set by the VA, though lenders typically look for 620 or better. Jumbo loans, which are common in the Bay Area and Sonoma County, generally have credit score floors between 680 and 700, with more programs available at 720 and above. That said, credit score is just one piece. I've gotten loans approved for borrowers with lower scores when the rest of the file was strong. If you're not sure where you stand, let's look at the full picture before you assume you don't qualify.
How much can I borrow for a mortgage based on my income?+
Lenders generally allow your total monthly debt payments, including the new mortgage, to be no more than 43% to 50% of your gross monthly income. That's your debt-to-income ratio, or DTI. But the real answer is more nuanced. Your income type matters a lot. W-2 employees qualify differently than self-employed borrowers. Restricted stock unit (RSU) income, bonus income, rental income, and investment income all get calculated differently. In high-cost markets like San Francisco and Marin County, we're regularly working with jumbo loan scenarios where the numbers look different from a textbook example. The fastest way to know your real number is to run the actual calculation with your actual income. I'm happy to do that in a short call at no cost or obligation.
How long does it take to close on a home loan?+
The industry average is around 12 to 30 days. In competitive markets like the Bay Area, where sellers often have multiple offers, being able to close in 21 days or less can make or break a deal. I've built my process around fast closings. We work to have files fully underwritten before you're even in contract so there are no surprises once the clock starts. The biggest delays in any closing come from incomplete documentation or appraisal issues. My team is proactive about both. If you need a tight timeline, tell me upfront and we'll plan for it.
What documents do I need to apply for a mortgage?+
For most borrowers, the standard list includes: two years of federal tax returns, two years of W-2s or 1099s, 30 days of recent pay stubs, two to three months of bank and asset statements, and your Social Security number for the credit pull. If you're self-employed, we'll also need your business returns. If you have rental income, investment accounts, or other income sources, I'll let you know exactly what we need for each one. I give every client a personalized checklist at the start so there's no guesswork.
Loan Types
What is a jumbo loan and how is it different from a conventional loan?+
A jumbo loan is any mortgage that exceeds the conforming loan limit set by the
Federal Housing Finance Agency for the property's county and number of units. Borrow more than the limit for your county and you're in jumbo territory. Between the national baseline and the high-cost ceiling sits a middle tier called
high-balance conforming, and the tier you land in changes your cost and your down payment. Jumbo loans are not backed by Fannie Mae or Freddie Mac, so lenders set their own guidelines. That typically means stronger credit requirements, larger cash reserves, and a more thorough underwriting process. The rates can actually be competitive with conforming loans, sometimes better. In the Bay Area, jumbo loans are the norm for most purchase transactions. This is where I've spent a significant part of my 35+ years. See the
2026 limit for every Bay Area county and the questions I'm asked most about jumbo and super jumbo financing.
What loan types does CJ Kerls specialize in?+
My core specialties are jumbo loans, self-employed and complex-income borrowers, FHA and VA loans, doctor loans (physician mortgages), condo financing, and bridge loans. I also work extensively with first-time homebuyers who need more guidance through the process. Some of them get in by
buying a two-unit property and renting out the other half. A big part of my practice is borrowers whose income doesn't fit neatly into a W-2 box: tech employees with heavy RSU compensation, business owners, partners in professional practices, and investors. I'm licensed in 29 states, so if you're buying or refinancing outside California, that's not a problem either.
What is the difference between FHA, VA, and conventional loans?+
FHA loans are insured by the Federal Housing Administration and designed for borrowers with lower credit scores or smaller down payments, as little as 3.5% down.
Gift funds from family can cover some or all of that down payment. The tradeoff is mortgage insurance, which adds to your monthly payment. VA loans are for eligible veterans, active-duty service members, and surviving spouses. They require no down payment, no private mortgage insurance, and often very competitive rates: one of the best loan programs available. Conventional loans are not government-backed and offer more flexibility on property types and loan structures. Which one makes sense depends on your eligibility, your goals, and the property you're buying.
Are there special mortgage programs for doctors or high-income professionals?+
Yes. Doctor loans, sometimes called physician mortgages, allow medical professionals to buy with little or no down payment, without the private mortgage insurance that normally applies at lower down payments, and with more flexible treatment of student loan debt. They're available not just to MDs but often to dentists, optometrists, veterinarians, and other licensed practitioners. At Rate, I have access to several of these programs. If you're in medicine or another qualifying profession, it's worth a conversation.
What is a bridge loan and when does it make sense?+
A bridge loan lets you tap the equity in your current home to fund the purchase of your next one, before your existing home sells. It's a short-term loan (typically six to twelve months) that bridges the gap between two transactions. It makes sense when you've found the right property, you don't want to make a contingent offer (which sellers in competitive markets often reject), and you have enough equity to cover the down payment on the new one. I've structured many of these transactions in the Bay Area, where the timing and sequencing of buying and selling often require creative solutions.
Should I finance a vacation rental as a second home or an investment property?+
This is one of the most consequential checkboxes on a loan application, and most buyers pick the wrong one because the second home terms look better on paper: 10% down instead of 15% or more, and a rate maybe a quarter to three quarters of a point above primary residence pricing instead of half a point to a point and a half. Here is the catch. A second home loan requires you to occupy the property for part of the year and to keep it under your own control, and rental income from it cannot be used to qualify you. An investment property loan has no occupancy requirement, but it costs more and demands larger reserves. If you are buying a vacation rental as a genuine business, especially if you are planning around the short-term rental tax strategy that lets losses offset W-2 income, the second home classification can quietly work against you.
The IRS limits personal use to the greater of 14 days or 10% of the days the property is rented before deductions get capped. A loan that requires you to occupy it and a tax rule that punishes you for occupying it are pulling in opposite directions. There is also a third option most buyers have never heard of: a debt service coverage ratio (DSCR) loan, which qualifies on the property's own rental income rather than yours. No tax returns, no debt-to-income calculation, and you can hold title in an LLC. Which one is right depends on how you will actually use the property. I go through all three in detail in
my guide to financing a vacation rental. Get this decided before you write an offer, not after.
Self-Employed & Complex Income
Can I get a mortgage if I'm self-employed?+
Yes, and this is one of my core specialties. The challenge with self-employed borrowers is that lenders qualify you based on net income, meaning what shows up after deductions on your tax returns, not what you actually deposited. For many business owners, those numbers look very different. I've spent years learning how to build the strongest possible loan file for self-employed clients: what documentation to pull, how to structure the income analysis, which lenders have the most flexible guidelines. If you've been told you can't qualify because you write everything off, talk to me before you give up. There are also loan options that
look beyond your tax returns entirely.
How do RSU or stock-based income borrowers qualify for a mortgage?+
RSU income is common in the Bay Area tech industry and has specific rules in mortgage underwriting. It can count toward mortgage qualification when the shares are vested, distributed without restrictions, publicly traded, and supported by the required history and documentation. Time-based awards generally require at least 12 months of vested distributions from your current employer. Performance-based awards usually require two years, although a shorter history of at least 12 months may be considered in some circumstances. The calculation also varies depending on which agency's guidelines apply. Fannie Mae generally uses 24 months of distributions, while Freddie Mac uses 12 months for time-based awards and 24 months for performance-based awards. Unvested shares are not current qualifying income, but future vesting may help show that the income is likely to continue. Jumbo programs can follow different rules, so I review the actual vesting history before determining the strongest available option.
Do mortgage lenders use gross or net income for self-employed borrowers?+
For self-employed borrowers, lenders use net income: your taxable income after business deductions, as reported on your federal tax returns. They look at your Schedule C (for sole proprietors), your K-1 (for partnerships or S-corps), or your corporate returns, then add back certain non-cash deductions like depreciation. The result is your qualifying income, which can be significantly lower than what you actually earn. This is the single biggest source of frustration for self-employed borrowers. There are loan programs,
bank statement loans for example, designed specifically for this situation.
Rates & Costs
What is the difference between an interest rate and an APR on a mortgage?+
The interest rate is the annual cost of borrowing the principal loan amount. The APR, or annual percentage rate, is a broader measure that includes the interest rate plus lender fees, points, and certain other costs, expressed as a yearly rate. APR gives you a more complete picture of the total cost of the loan. When comparing loans from different lenders, comparing APRs (not just rates) is more accurate. That said, APR assumes you keep the loan for its full term. For borrowers who plan to sell or refinance within a few years, the math looks different.
How do mortgage points work, and should I buy them down?+
One point equals 1% of the loan amount, paid upfront at closing in exchange for a lower interest rate. Whether buying down your rate makes sense depends on how much the rate drops per point and how long you plan to keep the loan. You calculate the break-even point: how many months until the monthly savings cover what you paid upfront. If you're staying for ten or more years, buying points often makes financial sense. If there's any chance you'll refinance or sell in the next three to five years, you may never recoup the cost. I run this calculation for every client when structuring the loan.
What are typical closing costs on a home purchase in California?+
Closing costs can vary significantly depending on the loan type, lender, and transaction. Common costs include lender fees, an appraisal, title insurance, escrow fees, prepaid homeowners insurance, property tax impounds, and recording fees. Some of these are negotiable; some are fixed. You'll receive a
Loan Estimate within three business days of application that breaks down every cost in detail. I walk every client through that document line by line so there are no surprises at the closing table. My goal is that you know exactly what you're paying and why before you ever sign anything.
Local & Geographic
Does CJ Kerls work with homebuyers in Sonoma County and Wine Country?+
Yes. Sonoma County is a core part of my practice. I work regularly with buyers in Healdsburg, Windsor, Santa Rosa, Cotati, Rohnert Park, Sebastopol, Petaluma, Sonoma and throughout Wine Country. My connection to the region is personal as well as professional. I have a home in Healdsburg and understand this market from the inside. Sonoma County has its own character: a mix of first-time buyers, move-up buyers, second-home buyers, and investors, with properties ranging from in-town residences to rural parcels and wine estates. Financing in this market can get complex, and I have the experience and lender relationships to handle that complexity. If you're buying anywhere in the North Bay, I'd love to help.
Can CJ Kerls originate loans outside of California?+
Yes. I'm licensed in 29 states, so if you're buying a second home in another state, relocating, or investing in property outside California, I can typically help. I've worked with Bay Area and Sonoma County clients on purchases from Hawaii to Colorado to the Pacific Northwest and beyond. Having one loan officer who knows you and your financial picture, rather than starting over with a new lender in each state, makes the process significantly smoother. If you're not sure whether I'm licensed in the state you're looking at, just ask. (
NMLS #243438.)
Working with CJ
What is it like to work with CJ Kerls and his daughter Chelsea on a home loan?+
My daughter Chelsea and I work every loan together. That means you get two people who know your file, can answer your questions, and are reachable throughout the process, not a loan officer who hands you off to a processor you've never met. We are available beyond standard business hours because real estate doesn't stop at 5 PM. We communicate proactively, which means you hear from us before you have to wonder what's happening. And we're honest: about timelines, about what you qualify for, about what the right loan actually is for your situation. We've been doing this together for years and the feedback we hear most often is that people felt taken care of, not processed.
What makes Bay Area mortgage lending different from other markets?+
Several things. First, loan sizes. Most purchase transactions in San Francisco, Marin, San Mateo, and Santa Clara counties require jumbo financing, meaning loans above the conforming limit, which means different underwriting standards, stronger credit requirements, and lenders who actually know how to handle large loan files. Second, speed. In competitive markets, the ability to close in 21 days or less rather than 30 days can be the difference between getting a property and losing it. Third, income complexity. A large share of Bay Area buyers are tech employees with RSU compensation, self-employed professionals, or people with multiple income streams. Qualifying them requires a lender who understands how that income works, not one who defaults to a W-2 mentality. I've been doing this in this market for 35+ years. The nuances are not new to me.
Still have questions?
Every situation is different. Call or text CJ directly.
