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Conventional Loans in Artesia
Artesia sits in a competitive pocket of southeast Los Angeles County where conventional loans dominate purchase activity. Most buyers here use these loans because they avoid the upfront mortgage insurance premiums that FHA charges.
The city's mix of single-family homes and condos fits conventional lending parameters well. Rates vary by borrower profile and market conditions, but borrowers with 680+ credit scores typically see the best pricing.
You need 620 minimum credit for most conventional loans, but 740+ unlocks the sharpest rates. Down payment starts at 3% for first-time buyers and 5% for repeat buyers, though 20% avoids PMI entirely.
Debt-to-income ratio caps at 50% with strong credit and reserves. Lenders want two months of mortgage payments in the bank after closing. W-2 income is easiest to document, but self-employed borrowers qualify with two years of tax returns.
SRK CAPITAL accesses 200+ wholesale lenders who compete on conventional loan pricing daily. Rate spreads between lenders hit 0.375% on identical scenarios, which equals $60-80 monthly on a $400K loan.
Some lenders waive PMI at 10% down through lender-paid programs. Others offer better pricing for condos or properties in specific ZIP codes. Shopping multiple lenders through a broker finds these advantages faster than applying direct.
Artesia buyers often mistake conventional loans as harder to get than FHA. Truth is, if you clear 680 credit and have 5% down, conventional costs less monthly and long-term than FHA on same-price homes.
We see borrowers overpay PMI by not understanding the difference between borrower-paid and lender-paid options. On 10% down deals, lender-paid PMI trades a slightly higher rate for no monthly PMI bill. Break-even is usually 7-9 years, which works if you plan to stay put.
FHA requires 1.75% upfront insurance plus monthly PMI for loan life on sub-10% down deals. Conventional drops PMI automatically at 78% loan-to-value or by request at 80%. That difference saves $150-250 monthly on a typical Artesia purchase.
Jumbo loans kick in above $806,500 in Los Angeles County for 2025. Below that threshold, conventional conforming loans deliver better rates and easier qualification than jumbo programs require.
Artesia's condo inventory requires attention to warrants and HOA certification. Conventional lenders scrutinize condo project approval more than FHA does. About 15% of LA County condo complexes fail conventional guidelines on reserve funding or owner-occupancy ratios.
Properties near the 91 freeway sometimes appraise below contract price in softening markets. Conventional loans require appraisal gaps covered in cash or renegotiation, unlike some government programs that allow seller credits to fill small gaps.
Minimum is 620, but 740+ gets best rates. Most Artesia buyers we close fall between 680-760 and qualify for solid pricing.
Yes, through lender-paid PMI programs at 10-15% down. You accept a 0.25-0.375% higher rate but pay zero monthly PMI.
They work if the HOA meets Fannie/Freddie guidelines on reserves and owner-occupancy. About 85% of complexes pass these requirements.
At 7% with 10% down and PMI, around $3,200 monthly including taxes and insurance. Rates vary by borrower profile and market conditions.
Los Angeles County conforming limit is $806,500 for 2025. Above that requires jumbo financing with stricter qualification.
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.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
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.