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Conventional Loans in La Puente
La Puente sits in eastern LA County where conventional loans typically offer better rates than government programs. Most properties here fall within conforming loan limits, making conventional financing the go-to option for buyers with solid credit.
The local housing stock includes single-family homes and condos that conventional lenders finance without the property restrictions FHA imposes. Buyers avoid upfront mortgage insurance premiums that come with government loans.
You need 620 minimum credit for conventional approval, though 740+ unlocks the best rates. Put down 3% as a first-time buyer or 5% for repeat purchases. Debt-to-income ratios max out at 50% with strong compensating factors.
Two years of steady employment history matters more than job title. Self-employed borrowers qualify with tax returns showing consistent income. Lenders verify assets to cover down payment plus 2-6 months reserves depending on loan size.
We compare rates across 200+ wholesale lenders because pricing varies widely on conventional loans. A 0.25% rate difference costs thousands over the loan term. Credit unions often quote competitive rates but lack flexibility on underwriting exceptions.
Portfolio lenders in our network approve deals that Fannie Mae's automated system rejects. This matters for self-employed buyers or those with recent credit events. Most conventional loans close in 21-25 days versus 35+ for FHA.
La Puente buyers overpay when they choose FHA by default. Run both scenarios before deciding. With 10% down and 700+ credit, conventional beats FHA on monthly payment every time once you factor in mortgage insurance costs.
Sellers prefer conventional offers because appraisals don't flag minor property issues. FHA requires repairs that kill deals. In multiple offer situations, conventional financing gives you an edge even at the same price.
FHA requires 3.5% down but charges 1.75% upfront mortgage insurance plus monthly premiums for the loan life. Conventional requires slightly more down but PMI cancels automatically at 78% LTV. On a $450K purchase, that saves $200+ monthly after a few years.
Jumbo loans kick in above conforming limits around $766K in LA County. If you're close to that threshold, conventional conforming loans offer better rates. Adjustable rate mortgages make sense if you plan to move within seven years.
La Puente's mix of older homes and newer construction works well for conventional financing. Lenders don't require specific property standards beyond basic safety and soundness. Condos need to be on the approved project list, which we verify before you make an offer.
The city's proximity to job centers in the San Gabriel Valley supports strong employment verification. Commuters working in downtown LA or Orange County qualify easily when income is stable. Property taxes here run lower than coastal LA County cities, helping debt ratios.
Minimum 620 to qualify, but 740+ gets you the best rates. Every 20-point drop above 620 costs roughly 0.25% in rate, which adds up over 30 years.
Put down 20% and you skip PMI entirely. With less down, PMI cancels automatically when you reach 78% loan-to-value through payments or appreciation.
Conventional costs less long-term if you have 10%+ down and 700+ credit. FHA makes sense with lower credit scores or minimal down payment savings.
Appraisers note major safety issues, but conventional loans don't require cosmetic repairs. This matters on older properties where FHA would demand updates before closing.
Expect 21-25 days from application to closing with clean documentation. Delays happen when buyers submit incomplete pay stubs or bank statements.
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.