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Conventional Loans in Sierra Madre
Sierra Madre homes typically exceed conforming loan limits, making conventional financing crucial for buyers targeting this foothill market.
Most purchases here require jumbo conventional loans. Strong credit and documentation are non-negotiable for approval.
You need 620 minimum credit for conventional approval. Most Sierra Madre buyers we work with have scores above 720.
Conforming limit is $806,500 in Los Angeles County. Above that, you enter jumbo territory with stricter requirements.
Expect 3-5% down for conforming loans, 10-20% for jumbo conventional. Higher down payments unlock better rates and terms.
We shop rates across 200+ wholesale lenders. Rate spreads can vary 0.375% or more between lenders on the same day.
Some lenders specialize in high-balance conventional loans common in Sierra Madre. Others avoid them entirely.
Portfolio lenders sometimes offer better jumbo terms than traditional bank channels. This changes monthly based on their balance sheet needs.
Sierra Madre buyers often underestimate documentation requirements. Two years tax returns, W-2s, and asset statements are standard.
We see buyers lock rates 30-45 days out. Longer locks cost more but make sense in volatile rate environments.
Properties in canyon areas sometimes trigger additional appraisal requirements. Factor two extra weeks into your timeline for hillside homes.
FHA loans require just 3.5% down but charge mortgage insurance for life on most loans. Conventional MI drops off at 78% loan-to-value.
Adjustable rate mortgages offer lower initial rates. They make sense if you plan to sell or refinance within 5-7 years.
Jumbo conventional typically beats portfolio loans on rate but demands pristine credit and documentation. Portfolio lenders flex more on underwriting.
Sierra Madre properties built before 1978 require lead paint disclosures. Some lenders want lead inspections before closing.
HOA dues in older foothill neighborhoods run lean. Lenders review HOA financials closely on any attached or planned unit development.
Earthquake insurance is not required but many lenders strongly suggest it. This affects your debt-to-income calculations during underwriting.
Minimum is 620 but most approved buyers here have 720 or higher. Better scores unlock lower rates and reduce down payment requirements.
Conforming loans allow 3% down. Jumbo conventional typically requires 10-20% depending on property price and credit profile.
The 2024 limit is $806,500 for single-family homes. Above that amount, you need jumbo conventional financing with stricter requirements.
Most purchases close in 30-45 days. Add two weeks if the property sits in canyon areas requiring specialized appraisals.
Yes, once you reach 78% loan-to-value through paydown or appreciation. You can request cancellation at 80% with an appraisal.
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.