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Conventional Loans in Santa Clarita
Santa Clarita sits in a sweet spot for conventional financing. Most properties fall under the $766,550 conforming limit, giving buyers access to Fannie Mae and Freddie Mac's best rates.
The local market rewards conventional buyers with 20% down. You skip PMI and often beat FHA offers in multiple bid situations.
You need 620 minimum credit for conventional approval. But 740+ unlocks the rate tiers that actually save money over 30 years.
Down payment starts at 3% for first-time buyers, 5% for repeat buyers. Going to 20% cuts your monthly payment significantly and removes mortgage insurance.
Debt-to-income caps at 50% with strong compensating factors. Most approvals happen between 36-43% DTI with standard documentation.
SRK CAPITAL accesses 200+ wholesale lenders for conventional loans. Rate spreads between lenders hit 0.375% on identical borrower profiles.
Some lenders price aggressively at 740 credit, others at 780. Portfolio lenders bend on DTI where Fannie Mae won't. Shopping this properly saves $40,000+ over a loan's life.
Conventional underwriting moved fast in 2024. Automated systems approve strong files in 48 hours with full documentation upfront.
Santa Clarita buyers overpay PMI constantly. If you're at 15% down, compare the math on paying points to hit 20% versus carrying insurance for 2 years.
Conventional beats FHA on any Santa Clarita property over $450,000. Lower insurance, easier appraisal requirements, and sellers prefer the cleaner close.
I see buyers pick 5% down when they have 10% available. That extra 5% sitting in stocks earning nothing costs them $200/month in PMI. Do the actual calculation.
FHA requires 3.5% down but charges mortgage insurance for the loan's life on purchases. Conventional drops PMI automatically at 78% loan-to-value.
Jumbo loans kick in above $766,550 in Santa Clarita. If you're near that line, conventional conforming usually prices better even with PMI than jumbo rates.
ARMs make sense if you're moving in 5-7 years. Fixed conventional works for buyers planning to stay through elementary and high school.
Santa Clarita's master-planned communities appraise cleanly for conventional loans. HOA approval happens faster than in older LA County areas with complex association structures.
Property taxes run lower than coastal LA County, helping buyers qualify at higher purchase prices. The DTI benefit shows up clearly in conventional underwriting.
Commuters to LA or Burbank factor transportation costs into affordability. Conventional underwriting doesn't count gas, but you should when picking your loan amount.
620 minimum for approval, but 740+ gets you the rate tiers that actually matter. The jump from 680 to 740 saves roughly 0.50% in rate.
3% for first-time buyers, 5% for repeat buyers, 20% to eliminate PMI. Most Santa Clarita buyers land between 10-20% down.
No. You can pay it monthly, upfront, or lender-paid (higher rate). All three cost you money—20% down is the only true elimination.
Yes, if the HOA meets Fannie/Freddie requirements. Most established Santa Clarita communities qualify without issues.
Conventional wins on properties above $450,000. Lower insurance costs and cleaner appraisals make it the default choice for strong credit buyers.
50% with compensating factors like high credit or cash reserves. Most approvals happen between 36-43% with standard two-year income documentation.
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.