Loading
Conventional Loans in Auburn
Auburn sits in Placer County's lower foothills, where home prices create a sweet spot for conventional financing. Most properties here fall well under the $766,550 conforming limit.
The city draws buyers who want space without paying Sacramento metro premiums. Conventional loans dominate because borrowers here typically have stable income and solid credit profiles.
Auburn's mix of historic homes and newer developments means appraisals usually come in clean. That matters when you're putting down less than 20% and need PMI approval.
You need 620 minimum credit for conventional approval, but 740+ unlocks the lowest rates. Most Auburn buyers we work with fall in the 680-760 range.
Down payments start at 3% for first-time buyers through Fannie Mae HomeReady or Freddie Mac Home Possible. Repeat buyers typically need 5% minimum.
Debt-to-income ratios max out at 50%, but staying under 43% gives you better rate pricing. Lenders want to see two years of steady employment or self-employment income.
SRK Capital shops your scenario across 200+ wholesale lenders who compete for conventional business. Rate spreads between lenders on the same day can hit 0.375% or more.
Credit unions price aggressively in Placer County, but their overlays often restrict which properties qualify. Wholesale lenders give us more flexibility on mixed-use buildings and rural parcels.
Auburn has properties that blur the line between suburban and rural. We work with lenders who understand Placer County appraisal districts and won't kill deals over minor access issues.
Auburn buyers often underestimate how much PMI costs with 5% down. On a $500K purchase, you're paying $200-250/month until you hit 20% equity through payments or appreciation.
I see borrowers chase 3% down programs when putting 5% down would drop their rate by 0.25%. Run the math both ways before you lock.
Properties in Old Town Auburn sometimes have foundation quirks that need engineer reports. Get your inspection done early so we can address appraisal concerns upfront.
FHA loans allow 580 credit and 3.5% down, but you pay mortgage insurance for the loan's life. Conventional PMI drops off at 78% loan-to-value automatically.
Jumbo loans kick in above $766,550 in Placer County. Auburn has pockets where estate properties hit that threshold, but most inventory stays conforming.
ARMs make sense if you're moving in five years or less. Auburn's lifestyle buyers usually stay longer, which favors 30-year fixed conventional terms.
Auburn's fire risk designation affects insurance costs, not loan approval. Budget $2,000-3,500 annually for homeowners coverage with FAIR Plan backup.
Well water and septic systems are common outside city limits. Conventional lenders require well tests and septic inspections before closing, adding $600-800 to your budget.
The city's historic district has properties with older electrical and plumbing. Appraisers flag these as needed repairs, not value killers, but you need cash reserves for updates.
Minimum is 620, but 740+ gets you the best rates. Most Auburn buyers we close have scores between 680-760.
First-time buyers can put down 3% through HomeReady or Home Possible programs. Repeat buyers typically need 5% minimum.
No. Conventional PMI drops off automatically at 78% loan-to-value or by request at 80%, unlike FHA which charges for the loan's life.
Yes. Lenders require a well water test showing potable quality and adequate flow, which costs $300-400.
It doesn't impact approval, only insurance costs. Expect to pay $2,000-3,500/year for coverage including FAIR Plan if needed.
The conforming limit is $766,550 for 2024. Most Auburn homes fall well below this, making conventional financing straightforward.
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.