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Conforming Loans in Selma
Selma sits well below conforming loan limits. Most single-family homes here qualify for the best rates available.
Conforming loans dominate Fresno County purchases. They offer the lowest rates when you have decent credit and 5% down.
These loans work for primary residences, second homes, and investment properties. Fannie Mae and Freddie Mac set the rules, so pricing stays competitive across lenders.
You need 620 minimum credit for most lenders, though 680+ unlocks better pricing. Down payment starts at 3% for first-timers, 5% for everyone else.
Debt-to-income caps at 50% for most scenarios. Lenders verify income through W-2s, paystubs, and two years of tax returns.
Self-employed borrowers qualify too, but you'll show two years of business returns. Most lenders want to see stable or growing income, not declining trends.
We shop 200+ wholesale lenders for conforming loans. Rate spreads between lenders hit 0.25-0.50% on the same profile, which costs thousands over 30 years.
Credit overlays matter more than loan limits in Selma. Some lenders approve 620 scores with compensating factors. Others want 640 minimum regardless of your down payment.
Pricing adjustments stack based on credit score, down payment, property type, and occupancy. A 680 score with 10% down prices better than 720 with 5% down in many cases.
Most Selma buyers qualify for conforming loans without trying. The challenge is getting the best execution, not getting approved.
I see borrowers leave money on the table by taking the first rate they're quoted. A 0.375% rate difference on a $350,000 loan costs $28,000 in extra interest over 30 years.
Rural properties near Selma sometimes appraise as working farms. That triggers different guidelines even if you're not farming. We catch this early to avoid surprises at closing.
FHA loans allow 580 credit and 3.5% down, but mortgage insurance costs more over time. Conforming loans drop PMI at 20% equity. FHA charges insurance for the loan's life on most scenarios.
Jumbo loans kick in above $766,550. They require 10-20% down and stricter credit standards. Selma doesn't see many jumbo purchases, but estate properties occasionally hit that threshold.
If your credit sits below 640 or you need flexible income documentation, FHA usually prices better. Above 680 credit with 5% down, conforming wins on cost and flexibility.
Selma properties include older homes that need appraisal attention. Foundation issues or deferred maintenance can stall conforming approvals since Fannie and Freddie require properties to meet minimum standards.
Agricultural properties with grape vineyards or orchards sometimes confuse appraisers. We specify residential use upfront to avoid farm classifications that complicate financing.
Fresno County transfer taxes and typical closing costs run 2-3% of purchase price. Factor this into your cash-to-close calculation alongside down payment and reserves.
Water rights and well conditions matter for rural Selma properties. Conforming lenders require well tests and clear water access. Budget $400-600 for testing if buying outside city limits.
$766,550 for single-family homes in Fresno County. Most Selma properties fall well below this threshold, so you'll qualify for conforming rates.
Yes, with 15% down and stronger credit requirements. Expect rates 0.50-0.75% higher than owner-occupied purchases and plan for six months reserves.
You pay mortgage insurance with less than 20% down. Once you hit 20% equity through payments or appreciation, you can cancel PMI completely.
Yes, if they meet Fannie Mae property standards. Appraisers flag foundation issues, roof damage, and safety hazards that require repair before closing.
740+ unlocks top-tier pricing. You'll see rate bumps at 739, 719, 699, 679, and 659, with costs increasing as credit drops.
Absolutely. You need two years of business tax returns showing stable income. Most farm owners and small business operators in Selma qualify with standard documentation.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.