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Conventional Loans in Lodi
Conventional loans dominate Lodi's housing market because they work for most borrowers who can put down at least 3%. San Joaquin County prices make conventional financing accessible without jumping to jumbo territory.
Your loan limit here is $806,500 for 2025. Most Lodi properties fall well under that threshold, which means better rates than you'd get on a jumbo loan.
We close conventional loans in Lodi faster than FHA because there's no government underwriting layer. Sellers prefer conventional offers for the same reason—fewer appraisal hurdles and quicker closes.
You need 620 minimum credit score, but realistically 680+ gets you competitive rates. Put down 3% if you're a first-time buyer, 5% if you've owned before.
Your debt-to-income ratio can't exceed 50% for most lenders. We calculate that by dividing your total monthly debt payments by your gross monthly income.
Expect to document two years of W-2s or tax returns. Self-employed borrowers need both years showing consistent income—lenders average the two years and won't credit recent spikes.
We shop your scenario across 200+ wholesale lenders because conventional rate spreads can hit half a point between lenders on the same day. That's $150 monthly on a $500,000 loan.
Credit unions in San Joaquin County often quote well but can't match wholesale pricing once you factor in their higher fees. We close conventional loans through national wholesalers who price aggressively for California volume.
Portfolio lenders matter here if your income documentation is messy or you're over 50% DTI. They hold their own loans instead of selling to Fannie or Freddie, which gives them flexibility on guidelines.
Lodi buyers waste money putting down more than 20% unless they hate the idea of PMI. Conventional PMI drops off automatically at 78% loan-to-value, and current rates make leveraging cheaper than tying up cash.
I steer borrowers to 15-year conventional loans when monthly payment works with their budget. You'll pay 50-75 basis points less in rate compared to 30-year, and interest savings over the loan term hit six figures.
Watch closing costs on conventional loans under $200,000. Lender fees don't scale down proportionally, so your percentage cost rises. We sometimes pivot to FHA on smaller loan amounts purely for better fee structure.
Conventional beats FHA in Lodi if you have 5% down and 700+ credit. FHA charges upfront mortgage insurance plus annual premiums that never drop off on purchases with less than 10% down.
You'll pay roughly $200 monthly more in mortgage insurance on a $400,000 FHA loan compared to conventional with 5% down. Over seven years that's $16,800 before you refinance or move.
Jumbo loans kick in above $806,500 in San Joaquin County. Conventional conforming loans carry lower rates and easier qualification because Fannie Mae and Freddie Mac buy them, creating massive liquidity.
Lodi's housing stock includes older homes that trigger appraisal conditions conventional lenders care about. Peeling paint, broken windows, or non-working appliances can delay closing until repairs happen.
San Joaquin County transfer taxes run about $1.10 per thousand, which is low compared to Bay Area counties. Your conventional loan closing costs benefit from these lower local fees.
Wineries and agricultural properties near Lodi need special underwriting. We route those deals to lenders experienced with California ag land because standard residential underwriters flag farm structures and well water systems.
Minimum is 620, but you need 680+ to access competitive rates. Below 680, your rate penalty can exceed one full percentage point.
3% down works for first-time buyers, 5% if you've owned before. PMI adds to your payment below 20% down but drops off automatically at 78% LTV.
Only if it's habitable and meets minimum property standards. Significant repairs may require a renovation loan instead of standard conventional financing.
We typically close in 21-25 days with clean documentation. Delays happen when appraisals flag property issues or income verification takes multiple rounds.
Yes, but you need two years of tax returns showing stable or increasing income. Lenders average the two years, so a strong recent year won't overcome a weak prior year.
$806,500 for single-family homes. Above that threshold you need jumbo financing, which carries higher rates and stricter qualification 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.