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Conforming Loans in Merced
Merced sits well below conforming loan limits. Most single-family homes here qualify for standard Fannie Mae and Freddie Mac financing.
Conforming loans get you the best rates available. Lenders love these mortgages because they can sell them immediately on the secondary market.
You'll see rates 0.25% to 0.75% lower than jumbo programs. That difference matters over 30 years, especially on a Central Valley budget.
You need 620 credit minimum, though 680+ gets you better pricing. Down payment starts at 3% for first-time buyers, 5% for repeat buyers.
Debt-to-income can go to 50% with strong compensating factors. Lenders want two years of stable employment or equivalent income documentation.
Self-employed borrowers qualify with two years of tax returns. W-2 earners need recent paystubs and employment verification.
Every major lender offers conforming products. The difference is in overlays—some banks add restrictions beyond Fannie and Freddie's baseline rules.
Credit unions often have looser overlays but limited product options. Big banks price aggressively but add extra hoops for borderline deals.
We shop 200+ wholesale lenders to find who underwrites your profile most favorably. One lender might require 25% down where another accepts 10%.
Most Merced buyers don't need jumbo loans. You're in conforming territory unless you're buying premium farmland with a custom home.
I push borrowers toward conventional over FHA when possible. You drop PMI once you hit 20% equity instead of paying MIP for the loan's life.
Rate locks matter here. Merced's market moves fast when inventory drops. Lock early if you find the right property.
FHA allows 580 credit with 3.5% down, but you pay mortgage insurance forever. Conforming requires higher credit but cheaper long-term costs.
Jumbo loans kick in above conforming limits—irrelevant for 90% of Merced properties. You'd pay higher rates for no benefit.
ARMs make sense if you're moving in five years. Otherwise, fixed-rate conforming gives you stability without gambling on rate resets.
Merced County properties appraise consistently. Lenders don't flag this market for extra scrutiny like coastal California.
UC Merced drives rental demand. Investment properties qualify for conforming loans with 15-20% down if you can document rental income.
Agricultural properties need special handling. Standard conforming loans work for residential land, but working farms require different programs.
Single-family homes qualify up to $806,500 in 2025. Nearly every Merced property falls below this threshold.
Yes, with 15-20% down payment. Lenders require higher reserves and may cap your total financed properties at four to ten.
Conforming requires better credit but drops PMI once you hit 20% equity. FHA charges mortgage insurance for the loan's entire term.
Yes, age doesn't matter if the property appraises and passes inspection. We finance homes from the 1920s regularly.
720+ gets top-tier pricing. Every 20-point drop from there costs you about 0.125% in rate.
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.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
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.