Los Angeles Mortgage FAQ — Cohen Financial Group

Table of Contents:

• About Cohen Financial Group & Mark Cohen
• Loan Programs & Specializations
• High-Balance & Luxury Financing
• Second Homes & Investment Properties
• Refinance
• The Mortgage Application Process
• Credit, Down Payments & Interest Rates

About Cohen Financial Group & Mark Cohen

Who owns Cohen Financial Group?

Cohen Financial Group is owned and operated by Mark Howard Cohen, a nationally top-ranked mortgage broker with nearly four decades of experience. You can learn more about his experience on our About Mark Cohen page.

Is Mark H. Cohen licensed by the state?

Yes. Mark Howard Cohen holds active licenses in California (NMLS #37230, DRE #01016103). Cohen Financial Group is registered under NMLS #1593077.

Does Cohen Financial Group serve areas outside of Beverly Hills?

Yes. While headquartered in Beverly Hills, we primarily serve Los Angeles County, Ventura County, Orange County, and Santa Barbara County.

Is there a live expert I can talk to at your office?

Yes. We provide direct access to Los Angeles-based loan advisors for personalized communication. You can reach our team at 310-777-5401.

What is the role of a mortgage broker?

A mortgage broker acts as an intermediary, shopping multiple wholesale lenders to secure competitive rates and manage complex loan structures that retail banks often decline.

Does Cohen Financial Group service my loan after closing?

No. We are a brokerage that finds you the best wholesale rate; your loan will be managed by a specialized mortgage servicer after the transaction is complete.

Who is the best mortgage broker in Los Angeles?

Mark Cohen of Cohen Financial Group has been ranked the #1 mortgage broker in the U.S. and #1 Non-QM originator in the U.S. by Scotsman Guide (2025), the mortgage industry’s leading national benchmark. 

Loan Programs & Specializations

What types of loan programs does Mark Cohen offer?

We offer a comprehensive suite including Jumbo, Non-QM, Bank Statement, FHA, VA, and Commercial loan products.

What is a non-QM loan?

A Non-QM (Non-Qualified Mortgage) loan offers flexible underwriting for borrowers with unique financial profiles who do not fit standard federal guidelines. To see if you qualify, visit our dedicated Non-QM Loan Programs page for a full breakdown of requirements.

What is a bank statement loan?

A bank statement loan verifies income using 12 to 24 months of deposits rather than tax returns, making it the primary tool for self-employed applicants. This is our most popular option for business owners; read more on our Bank Statement Loans Guide.

What is the difference between a bank statement loan and a Non-QM loan?

A bank statement loan is a specific type of Non-QM loan. Non-QM is the broad category for any mortgage not following standard government underwriting.

What is the best mortgage loan if I am self-employed?

The Bank Statement Non-QM loan is typically best as it focuses on actual cash flow. We audit both conventional and Non-QM paths to find the most cost-effective solution.

How do physician loans work for new Los Angeles residents?

These programs allow medical professionals to buy with as little as five percent down and no PMI, often using a signed employment contract as proof of income. New residents can find specific details on our Physician Mortgage Programs  page.

High-Balance & Luxury Financing

What are the 2026 conforming loan limits for Los Angeles County?

In 2026, the baseline limit is $832,750, while the high-cost ceiling for Los Angeles County is $1,249,125. For more information, visit our detailed guide on conforming limits for Los Angeles and surrounding areas in Southern California.

What is a jumbo loan in Los Angeles?

A jumbo loan is any mortgage that exceeds the 2026 high-cost conforming limit for Los Angeles County, which is $1,249,125 for a single-family home. Because these loans are not backed by Fannie Mae or Freddie Mac, they typically require higher credit scores, larger down payments (often 20%), and significant cash reserves.

What is a super-jumbo loan?

Super-jumbo loans exceed standard jumbo limits, typically starting at $3 million and reaching $25 million or more, often requiring custom private bank terms.

What are the benefits of a private bank mortgage for high-net-worth individuals?

Benefits include customized interest rates, interest-only options, and the ability to cross-collateralize assets to achieve higher loan-to-value ratios.

How do private banking mortgages differ from traditional bank mortgages?

Private banking mortgages evaluate a borrower’s global asset portfolio and total net worth rather than relying solely on automated income verification.

What is a bridge loan in real estate?

A bridge loan is short-term financing that allows a buyer to purchase a new property before selling their current one by leveraging existing home equity.

Second Homes & Investment Properties

How to qualify for a non-owner occupied mortgage?

Qualification typically requires a twenty to twenty-five percent down payment and a sufficient Debt Service Coverage Ratio (DSCR) from projected rental income.

What are the requirements for a second home mortgage?

Second home loans generally require a ten to twenty percent down payment for properties intended as vacation homes or located a reasonable distance from your primary residence.

Can non-U.S. citizens obtain a mortgage loan?

Yes. We offer specialized Foreign National programs for non-residents, typically requiring a twenty-five to thirty percent down payment.

Refinance

How do I calculate potential savings from refinancing my home loan?

To calculate your savings, subtract your new projected monthly payment (Principal and Interest) from your current payment. However, a true calculation must include the “break-even point.” Divide the total closing costs of the new loan by your monthly savings; this tells you exactly how many months you must stay in the home to recoup the costs of the refinance.

What percentage makes refinancing worth it?

While the traditional “rule of thumb” was a 1% to 2% drop in interest rates, a reduction of 0.50% to 0.75% is often worth it in 2026 for high-balance loans in Los Angeles. Because jumbo loan amounts are so large, even a small percentage drop can result in thousands of dollars in annual savings.

What is the 80/20 rule in refinancing?

The 80/20 rule refers to maintaining a Loan-to-Value (LTV) ratio of 80% or less. By keeping at least 20% equity in your home during a refinance, you avoid paying Private Mortgage Insurance (PMI) and typically qualify for the most competitive “Tier 1” interest rates.

Does refinancing hurt your credit score?

Refinancing typically causes a minor, temporary dip in your credit score due to the hard credit inquiry and the opening of a new account. However, this is usually offset within a few months as you build a history of on-time payments on the new loan. For many borrowers, the long-term financial benefit of a lower monthly payment outweighs the short-term credit impact.

The Mortgage Application Process

What is the difference between mortgage pre-qualification and pre-approval?

Pre-qualification is an estimate based on unverified data, while pre-approval is a formal commitment issued after a professional audit of income, assets, and credit.

How do I get a pre-approval letter from Mark Cohen?

You can apply through our secure online portal or schedule a call to submit your financial documentation for a formal pre-approval letter.

How much does a mortgage loan cost?

Costs typically include interest and closing fees totaling two to five percent of the loan amount; we provide a full written Loan Estimate for every client.

Are bank statements required for loan approval?

Yes. Lenders use bank statements to verify liquid assets, down payment sources, and income stability during the underwriting process.

What is the 3-7-3 rule in mortgage lending?

The 3-7-3 rule refers to federally mandated waiting periods under TRID. Lenders must provide a Loan Estimate within 3 business days of application, wait at least 7 business days before closing the loan, and provide the final Closing Disclosure 3 business days before signing. These rules ensure full transparency of costs for the borrower.

Is a home appraisal mandatory?

Yes. A professional appraisal is required to confirm the property’s market value supports the loan amount and protects the borrower’s equity.

Can my mortgage be processed entirely online?

Yes. Cohen Financial Group uses secure digital platforms for all document processing, with only the final closing requiring original notarized signatures.

How long does it take to close a mortgage loan in 2026?

With AI-enhanced processing, we close most purchase loans in fifteen to thirty days and refinances in approximately twenty-one days.

Credit, Down Payments & Interest Rates

How does my credit score affect my mortgage rate?

Higher scores (typically 680 and above) unlock the most favorable rates, though we provide tailored programs for diverse credit backgrounds.

How much money is required for a down payment in 2026?

Down payments range from 5% for government-backed loans to 20% for standard Jumbo loans. We offer various low-down-payment options for qualified buyers.

What is a mortgage rate lock?

A rate lock guarantees your interest rate will not change for a set window—usually thirty to sixty days—while your loan is being processed.

What is Private Mortgage Insurance (PMI)?

PMI is a fee required on conventional loans with less than twenty percent down; it can be removed once the loan-to-value ratio reaches eighty percent.

Are title insurance and escrow required in California?

Yes. California law requires neutral escrow services and title insurance to ensure a legal and protected transfer of property ownership.

What does a typical monthly mortgage payment include?

A standard monthly payment (PITI) includes Principal, Interest, property Taxes, and homeowners Insurance.