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Conventional Loans in Temple City
Temple City sits in a sweet spot for conventional financing. Most homes here fall under the $1.15M conforming limit, which means better rates than jumbo territory.
The San Gabriel Valley attracts buyers with stable employment and solid credit profiles. That's exactly who conventional loans reward with lower costs and fewer restrictions than government-backed options.
You need 620 minimum credit for conventional approval, but 740+ unlocks the lowest rates. Lenders want to see debt-to-income below 43%, though some programs stretch to 50% with compensating factors.
Down payment starts at 3% for first-time buyers, 5% for repeat purchasers. Put down less than 20% and you'll pay PMI until you hit 20% equity, but you can cancel it unlike FHA's lifetime mortgage insurance.
Temple City borrowers have access to 200+ wholesale lenders through brokers like us. Banks offer conventional loans too, but they're locked into their own rate sheets while we shop your scenario across multiple investors.
Rate differences between lenders can hit 0.375% on the same day for the same borrower profile. That's $120 monthly on a $600K loan, which is typical for Temple City's housing stock.
Most Temple City buyers overpay PMI because they don't know about lender-paid options. You can take a slightly higher rate and eliminate the monthly PMI payment, which often pencils better if you're putting down 10-15%.
We see approved buyers in this area get denied at the last minute for undisclosed liabilities. Chinese buyers especially need to document foreign income properly upfront, not three days before closing.
FHA requires just 3.5% down versus conventional's 3%, but FHA charges lifetime mortgage insurance plus a 1.75% upfront fee. On a $650K Temple City home, that's $11,375 at closing plus $380 monthly that never cancels.
Conventional lets you drop PMI, accepts higher loan amounts before going jumbo, and doesn't require FHA's strict appraisal standards. Sellers prefer conventional offers because FHA appraisals kill deals over minor repairs.
Temple City's older housing stock from the 1950s-1970s appraises well for conventional loans. Lenders don't flag cosmetic updates the way FHA does, so you're not stuck negotiating foundation cracks or chipped paint.
The city's proximity to good school districts means properties hold value during rate fluctuations. Appraisers have solid comps, which prevents valuation surprises that torpedo deals in less stable markets.
Minimum is 620, but you'll pay significantly higher rates below 680. Scores above 740 qualify for the best pricing tiers and lowest PMI costs.
Yes, but you need 15% down minimum and rates run about 0.625% higher than owner-occupied. Rental income can offset your debt ratio if you have a signed lease.
PMI costs 0.3-1.5% annually based on credit score and down payment. It cancels automatically at 78% loan-to-value or by request at 80% equity through payments or appreciation.
Los Angeles County's 2024 conforming limit is $1,149,825 for single-family homes. Above that, you enter jumbo territory with stricter requirements and different pricing.
No, conventional typically closes faster because appraisals are less stringent. We close most conventional purchases in 21-25 days versus 30+ for FHA.
Standard conventional loans require the home to be habitable and meet basic safety standards. For major rehabs, you need a renovation loan like Fannie Mae HomeStyle.
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.