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Shafter sits in Kern County's agricultural core, where home prices run well below coastal California norms. That makes conventional financing a natural fit — you can often avoid jumbo loan thresholds entirely.
HousingWire flagged the 30-year fixed hitting 6.57% recently, with applications dropping hard. Rate-sensitive buyers in Shafter should weigh their timing carefully. Rates vary by borrower profile and market conditions.
620
Min Credit Score
3%
Min Down Payment
20% Equity
PMI Drops At
6.57% (Apr 2026)
30-Year Fixed
45–50%
Max DTI (Typical)
Conventional Loans in Shafter
Most conventional loans require a 620 minimum credit score. But 740 and above is where you get the best pricing — lenders tier their rates based on risk.
Down payment starts at 3% for first-time buyers on certain programs. Put down 20% and you skip private mortgage insurance, which is monthly coverage lenders require when equity is low.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Shafter.
Shafter sits in Kern County's agricultural core, where home prices run well below coastal California norms. That makes conventional financing a natural fit — you can often avoid jumbo loan thresholds entirely.
HousingWire flagged the 30-year fixed hitting 6.57% recently, with applications dropping hard. Rate-sensitive buyers in Shafter should weigh their timing carefully. Rates vary by borrower profile and market conditions.
Most conventional loans require a 620 minimum credit score. But 740 and above is where you get the best pricing — lenders tier their rates based on risk.
Retail banks show you one rate sheet. We pull from 200+ wholesale lenders, so Shafter borrowers see options most buyers never get offered.
Conventional pricing is highly lender-specific. Two lenders quoting the same loan can be 0.25% apart on rate. That gap adds up over 30 years.
Shafter buyers with strong W-2 income and solid credit are conventional loan candidates almost every time. The math is straightforward and approvals move fast.
Watch your debt-to-income ratio. Conventional loans cap DTI — that's total monthly debt divided by gross income — at 45% for most lenders, sometimes 50% with strong compensating factors.
FHA loans accept lower credit scores but carry mortgage insurance for the life of the loan. Conventional PMI drops off once you hit 20% equity — FHA's doesn't always.
ARMs start lower but adjust later. In a market where rates are already elevated, locking a 30-year fixed conventional can be the safer long-term call for Shafter buyers.
Shafter's economy ties closely to agriculture and logistics. Lenders look at employment stability — seasonal or contract income needs careful documentation.
Kern County home values keep most purchases well inside conforming loan limits. That means standard conventional guidelines apply — no jumbo overlays or stricter reserve requirements.
Lenders require at least 620 to qualify. Scores above 740 get the best rates and lower PMI costs.
Yes, certain conventional programs allow 3% down for first-time buyers. You'll pay PMI until you reach 20% equity.
PMI is monthly insurance lenders require when your down payment is under 20%. It cancels automatically once your equity hits 20%.
Conventional requires a higher credit score but offers more flexible PMI terms. FHA mortgage insurance often stays for the full loan term.
As of April 2026, the 30-year fixed rate is elevated nationally. Rates vary by borrower profile and market conditions — shopping lenders matters.
Yes. W-2 income qualifies most cleanly. Seasonal or self-employed income requires stronger documentation and may need two years of tax returns.