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Conventional Loans in Madera
Conventional loans dominate Madera's mortgage market because they offer the lowest rates when you qualify. Most Madera buyers who put down 20% choose conventional over FHA to avoid mortgage insurance long-term.
Madera County's housing stock runs from starter homes in central Madera to larger properties near the foothills. Conventional financing works for both if your credit and income line up with lender standards.
Rates vary by borrower profile and market conditions. The difference between conventional and FHA rates typically runs 0.25% to 0.50% lower for conventional when you bring solid credit and down payment.
You need 620 credit minimum for most conventional programs, but 740+ gets you the best pricing. Every 20-point jump in credit score drops your rate and saves hundreds monthly.
Down payment starts at 3% for first-time buyers through some programs. Put down 5% and you open more lender options. Hit 20% and you skip private mortgage insurance entirely.
Debt-to-income ratio caps at 50% with most lenders we use. That includes your new mortgage payment plus car loans, credit cards, and student debt divided by gross monthly income.
You'll need two years of stable employment history. Self-employed borrowers in Madera need two years of tax returns showing consistent income, not just recent bank deposits.
We shop 200+ wholesale lenders to find conventional programs that fit your specific situation. A bank might quote you one rate while three wholesale lenders beat it by 0.375% on identical terms.
Conforming loan limits apply to most Madera properties. The 2024 limit is $766,550 for single-family homes. Above that you need jumbo financing with different approval standards.
Some lenders price conventional loans more aggressively in Central Valley markets like Madera. Others focus on coastal California and charge more here. That's why shopping multiple sources matters.
Underwriting timelines run 21 to 30 days for conventional loans. Automated underwriting systems approve most straightforward files in minutes, but complex income or credit takes longer.
Most Madera buyers overpay because they talk to one lender and assume the rate is standard. We see 0.25% to 0.50% swings between lenders on the same borrower profile every week.
If you're putting down less than 20%, run the math on PMI versus a slightly higher rate with lender-paid coverage. Sometimes paying 0.125% more in rate saves you $150 monthly in PMI.
Credit scores between 680 and 739 get hit hardest on pricing adjustments. Bringing yours from 700 to 740 before applying can save $80 to $120 monthly on a typical Madera purchase.
Conventional loans allow gift funds for down payment from family. You just need a gift letter stating the money doesn't require repayment. This opens doors for buyers with income but limited savings.
FHA loans require 3.5% down versus 3% conventional, but FHA charges upfront and monthly mortgage insurance you can't remove. Conventional PMI drops off at 78% loan-to-value automatically.
VA loans beat conventional for eligible veterans with zero down and no PMI. If you qualify for VA, use it. Conventional makes sense for non-veterans or second home purchases.
Jumbo loans kick in above $766,550 in Madera County. They require larger down payments and stronger credit than conventional conforming, typically 20% down and 700+ credit minimum.
Adjustable rate mortgages offer lower start rates than fixed conventional. The 7/1 ARM runs about 0.50% lower initially but adjusts after seven years. Fixed conventional locks your rate for 30 years.
Madera's agricultural economy means many borrowers show seasonal income fluctuations. Conventional underwriting averages two years of tax returns, which smooths out the peaks and valleys for approval.
Properties on well and septic in rural Madera County require additional inspections. Conventional lenders need proof both systems meet health department standards before closing.
Madera sits 25 miles north of Fresno, attracting buyers who work there but want lower prices. Your commute doesn't affect approval, but lenders verify the property location falls within Madera County conforming limits.
Some older homes in central Madera need appraisal repairs for conventional financing. Wood rot, foundation cracks, or roof issues flagged in appraisal must get fixed before closing unless you use FHA's repair escrow option.
Minimum 620 credit for approval, but 740+ scores get the best rates. Every 20-point increase lowers your rate and monthly payment.
First-time buyers can put down 3% through some programs. Standard minimum is 5%, and 20% down eliminates private mortgage insurance entirely.
Yes, conventional loans cover rural Madera properties on well and septic. Lenders require inspections proving both systems meet health department standards before closing.
Typical timeline runs 21 to 30 days from application to closing. Straightforward W-2 income and strong credit often get automated approval within days.
Yes, family can gift your entire down payment with a signed letter stating no repayment required. This helps buyers with solid income but limited savings.
The 2024 conforming limit is $766,550 for single-family homes. Above that amount you need jumbo financing with stricter approval requirements.
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.