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Conventional Loans in San Marino
San Marino sits in the top tier of Los Angeles County real estate. Most properties here exceed the 2024 conforming loan limit of $766,550.
Standard conventional loans work for condos and smaller homes. Everything else requires jumbo financing, which follows conventional underwriting with stricter standards.
The shift happens at that $766,550 threshold. Below it, you're shopping among dozens of lenders. Above it, you need a broker who knows which banks price jumbo competitively.
Conforming conventional loans require 620 minimum credit score, but San Marino deals typically show 700+. You'll need 3% down for primary residence, 15% for investment property.
Jumbo conventional loans demand higher standards. Expect 680-720 minimum credit scores depending on loan size. Down payment starts at 10%, but 20% gets better pricing.
Debt-to-income ratios max out at 43% for conforming, sometimes 36% for jumbo. Self-employed borrowers face two years of tax returns and full documentation.
Portfolio lenders dominate San Marino jumbo loans. They hold loans on their books instead of selling them, which means underwriting varies wildly between institutions.
Credit unions price jumbo loans 0.25-0.5% better than big banks, but they cap at $2-3 million. Above that, you're looking at private banks and correspondent lenders.
Rate sheets change daily in jumbo space. A lender offering best pricing Monday might be middle-of-pack Thursday. Brokers compare 15-20 options per deal.
San Marino buyers often have complex income. Business owners, equity compensation, trust distributions. Conforming loans struggle with this. Jumbo lenders expect it.
The worst mistake is getting pre-approved at conforming limits when you need jumbo. Requirements differ enough that a conforming approval means nothing for a $1.5M purchase.
Investment properties in San Marino rarely pencil out on conventional financing. Rental income doesn't cover the mortgage at current prices. Buyers use equity or all-cash, then refi later.
FHA loans cap at $644,000 in LA County. That eliminates them for 95% of San Marino properties. VA loans follow conforming limits with rare exceptions.
Bank statement loans cost 0.5-1% more than conventional but skip tax returns. Self-employed borrowers with write-offs often qualify for more using 12-24 months of deposits.
ARMs make sense on San Marino jumbo loans. The 7/1 ARM typically prices 0.375-0.625% below 30-year fixed. Most buyers sell or refi within seven years anyway.
San Marino Unified School District drives property values. Conventional appraisals adjust for school boundaries. A house two blocks outside the district appraises 15-20% lower.
Properties built pre-1960 sometimes need seismic retrofitting. Conventional lenders require it complete before closing or escrowed funds covering 150% of estimated cost.
HOA dues run high in San Marino condo complexes. Lenders count full HOA payment in DTI, even if it includes utilities. This tightens qualification more than buyers expect.
Minimum 620 for conforming loans, but 700+ is standard here. Jumbo loans need 680-720 depending on loan amount and down payment.
Conforming conventional loans allow 3% down on primary residence. Jumbo loans typically require 10-20%, with better rates at 20% down.
Yes, but you need 15% down minimum and rental income rarely covers payments at current prices. Most investors use alternative structures.
Conforming loans stay under $766,550 and follow standardized rules. Jumbo loans exceed that limit with stricter credit and down payment requirements.
Conforming lenders need two years of vesting history and average it. Jumbo lenders often use current vesting schedules and count more of it.
Standard conventional loans require the home livable at closing. Renovation loans like Fannie Mae HomeStyle work but add complexity and cost.
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.