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Hawaiian Gardens sits in a price zone where conventional loans dominate. Most properties here fall under conforming limits, making conventional financing the default choice for buyers with decent credit.
We're seeing faster closes on conventional deals than FHA in this area. Sellers prefer them because there's no appraisal hassle with property condition issues that trip up government loans.
Conventional Loans in Hawaiian Gardens
You need 620 minimum credit for conventional approval. Most lenders want 3% down for primary homes, 15% for investment properties in Hawaiian Gardens.
Your debt-to-income ratio can't exceed 50% with most lenders we use. W-2 income is easiest to document—expect two years of tax returns if you're self-employed.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Hawaiian Gardens.
Hawaiian Gardens sits in a price zone where conventional loans dominate. Most properties here fall under conforming limits, making conventional financing the default choice for buyers with decent credit.
We're seeing faster closes on conventional deals than FHA in this area. Sellers prefer them because there's no appraisal hassle with property condition issues that trip up government loans.
You need 620 minimum credit for conventional approval. Most lenders want 3% down for primary homes, 15% for investment properties in Hawaiian Gardens.
We shop 200+ wholesale lenders for conventional loans. Rate spreads between lenders hit 0.5% some weeks, which changes your monthly payment by hundreds of dollars.
Credit unions often beat big banks on rate here, but their underwriting takes longer. Portfolio lenders give us flexibility on borderline credit situations that Fannie Mae would reject.
Put 5% down instead of 3% if you can. That extra 2% drops your rate and kills PMI faster, saving you $150+ monthly on a typical Hawaiian Gardens home.
Avoid paying points in this market. Rates shift too fast to lock in long-term pricing. We're refinancing clients who paid points just 18 months ago because rates dropped.
FHA loans cost more long-term despite lower credit requirements. You'll pay mortgage insurance for the loan's life versus conventional PMI that cancels at 78% loan-to-value.
Jumbo loans kick in above $832,750 in LA County. If you're close to that threshold, conventional conforming gives you better rates and easier approval than crossing into jumbo territory.
Hawaiian Gardens has older housing stock. Conventional appraisers are less strict than FHA about cosmetic issues, which matters when properties need minor repairs.
Property taxes here run lower than neighboring Long Beach or Cerritos. That helps your debt-to-income ratio since PITI stays manageable even with smaller down payments.
You need 620 minimum, but 680+ gets you the best rates. We see approvals at 620 regularly, just expect higher interest costs.
Yes, but you'll need 15% down minimum and 680+ credit. Rental income can offset the mortgage if you have a tenant lined up.
Figure 21-30 days from application to close. Clean credit and W-2 income gets you closer to 21 days with our fastest lenders.
Yes, PMI applies until you hit 78% loan-to-value. At 10% down, you're looking at $80-120 monthly on a $400K purchase.
The limit is $832,750 for LA County in 2024. Above that, you're in jumbo territory with different rate pricing.