Question 1

What credit score do I need for conventional loans in Orange Cove?

Accepted Answer

620 minimum, but you'll pay PMI surcharges below 680. Most local buyers with agricultural income aim for 700+ to get competitive pricing and avoid extra fees.

Question 2

Can I use seasonal farm income to qualify?

Accepted Answer

Yes, but lenders average your last 24 months of W-2 or business income. If your earnings dipped last year due to drought or crop issues, that average pulls down your qualifying income.

Question 3

How much down payment do I need?

Accepted Answer

5% minimum for owner-occupied homes. You'll pay PMI until you reach 20% equity through payments or appreciation, typically 5-8 years at normal amortization rates.

Question 4

Do conventional loans work on rural Orange Cove properties?

Accepted Answer

Yes, but properties on well water or septic require additional inspections. Lenders also scrutinize appraisals more closely in agricultural areas where comparable sales vary widely by season.

Question 5

Should I choose conventional or FHA in Orange Cove?

Accepted Answer

Conventional costs less when your credit exceeds 680. FHA makes sense below that threshold or when you only have 3.5% down, but you'll pay permanent mortgage insurance.

Conventional Loans in Orange Cove — Lower Rates for Qualified Borrowers