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Conventional Loans in Nevada City
Nevada City sits in a niche market where historic properties and modern builds coexist. Conventional loans handle both Victorian fixer-uppers and contemporary mountain homes without the property restrictions FHA imposes.
Most serious buyers here use conventional financing. The Gold Country attracts strong borrowers — remote workers, retirees with equity, self-employed professionals who clear underwriting.
This isn't a starter-home market. You're competing against cash and well-qualified buyers, so having conventional approval matters.
You need 620 credit minimum, but realistically 680+ to see decent rates. Most lenders want 5% down for primary homes, 15% for second homes, 25% for investment properties.
Debt-to-income ratios max out at 50%, though 43% is safer. W-2 income is easiest to document — two years of tax returns, recent pay stubs, employment verification.
Self-employed borrowers need two years of business returns and a CPA letter. Lenders average your income across both years, so a down year hurts you.
We access 200+ wholesale lenders with different overlays. One bank denies your 1890s Victorian, another approves it with a standard appraisal.
Rate shopping yourself wastes time. Each application dings your credit and most retail banks use the same handful of investors anyway.
Brokers see which lenders handle unique Nevada City properties — wells, septic, unpermitted additions, fire zone addresses. That knowledge saves deals.
Nevada City appraisals take longer than metro areas. Order early and expect the appraiser to pull comps from Grass Valley when local sales are thin.
Fire insurance costs shock buyers. Budget $3,000-$5,000 annually in high-risk zones, and some lenders won't touch properties without defensible space documentation.
Wells and septic don't kill deals, but lenders want inspections. A failed well test delays closing by weeks, so negotiate inspection periods accordingly.
Vacation rental buyers hit a wall at 10 financed properties. After that, you need portfolio or DSCR loans — conventional financing stops working.
FHA allows 580 credit with 3.5% down but restricts properties. That cute fixer downtown probably fails FHA inspection, leaving you with conventional or cash.
Jumbo loans kick in around $766,550 in Nevada County. Conventional conforming caps there, offering better rates and looser requirements than jumbo products.
USDA loans work in some rural Nevada County areas but not Nevada City proper. Check eligibility maps before assuming you qualify.
Historic district properties need special attention. Some lenders freak out over 130-year-old foundations and knob-and-tube wiring even when it's legal and grandfathered.
Broad Street, Commercial Street, and Zion Street homes often appraise well. The National Avenue area offers more affordable entry points with reliable comps.
Commuter buyers financing here while working in Roseville or Auburn face no occupancy issues on primary residences. Just prove you intend to live there.
Second-home buyers need 10% down minimum, sometimes 15% depending on credit. Lenders want to see six months reserves for primary mortgage plus the Nevada City payment.
Minimum is 620, but 680+ gets you competitive rates. Below 680 expect pricing hits that add 0.5-1% to your rate.
Yes, if the appraiser notes it's functional and typical for the area. Some lenders panic over old systems, so working with experienced brokers matters.
Plan for $3,000-$5,000 annually in high fire zones. Some properties exceed that, and FAIR Plan coverage may be your only option.
Yes, with 10-15% down and proof you won't rent it out. Lenders want six months reserves covering both your primary and second home payments.
They require inspections but don't kill deals. Failed tests delay closing, so negotiate inspection periods long enough to address issues.
Around $766,550 for 2024. Above that you need jumbo financing with stricter requirements and higher rates.
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.