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Nevada City is a small Gold Rush-era town in the Sierra Nevada foothills. Properties here range from Victorian homes in town to rural parcels with acreage.
Conventional loans work well in this market. They handle single-family homes, second homes, and investment properties — all common in Nevada County.
620
Min Credit Score
3%
Min Down Payment
45–50%
Max DTI
6.57% (market)
30-Yr Fixed (as of Apr 2026)
Conventional Loans in Nevada City
Most lenders want a 620 credit score minimum for conventional. To drop PMI — private mortgage insurance — you need 20% down.
Your debt-to-income ratio should stay under 45%. Some lenders push to 50% with strong compensating factors like reserves or high credit.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Nevada City.
Nevada City is a small Gold Rush-era town in the Sierra Nevada foothills. Properties here range from Victorian homes in town to rural parcels with acreage.
Conventional loans work well in this market. They handle single-family homes, second homes, and investment properties — all common in Nevada County.
Most lenders want a 620 credit score minimum for conventional. To drop PMI — private mortgage insurance — you need 20% down.
Nevada City is a small market. Local banks often price less competitively than wholesale lenders who specialize in volume.
We shop conventional loans across 200+ wholesale lenders. That reach matters — especially for rural or acreage properties that some lenders flag.
HousingWire flagged the 30-year fixed hitting 6.57% with applications dropping over 10% week-over-week. Rate sensitivity is real right now.
For conventional buyers in Nevada City, locking early makes sense. Rates vary by borrower profile and market conditions — don't assume a quoted rate holds.
FHA loans let you qualify with a 580 score and 3.5% down. But they add mortgage insurance for the life of the loan — that cost adds up.
Conventional drops PMI once you hit 20% equity. For buyers who can qualify, that long-term savings often beats FHA's lower entry bar.
Nevada County has wildfire risk. Some lenders require extra documentation or escrow reserves for properties in high-risk fire zones.
Properties with well and septic are common outside Nevada City proper. Appraisers and underwriters will look at both — be ready for that review.
Most lenders require a 620 minimum. A score above 740 gets you the best pricing.
Yes, but some lenders restrict rural or acreage deals. We work with lenders who handle them regularly.
It can. Some lenders require proof of fire insurance or hold back reserves on high-risk properties.
PMI cancels automatically when you reach 20% equity. You can also request removal once you hit that threshold.
Conventional is cheaper long-term if you qualify. FHA works better with lower credit or smaller down payments.