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Conventional Loans in Burlingame
Burlingame's desirable location between San Francisco and Silicon Valley attracts buyers seeking stable neighborhoods and excellent schools. The city's mix of single-family homes and townhouses creates diverse financing needs.
Conventional loans serve as the primary financing tool for most Burlingame buyers. These non-government-backed mortgages offer flexibility that matches the market's varied price points and property types.
Peninsula real estate typically commands premium prices, making conventional financing particularly relevant. Borrowers with strong credit and stable income find these loans provide competitive terms without FHA or VA restrictions.
Most conventional loans require a minimum credit score of 620, though stronger profiles above 740 secure the best rates. Lenders evaluate debt-to-income ratios, typically capping at 43% to 50% depending on compensating factors.
Down payment requirements start at 3% for first-time buyers, though 20% down eliminates private mortgage insurance costs. Employment verification covers two years of stable income history.
Self-employed borrowers qualify using tax returns and profit-loss statements. Recent credit events like bankruptcy or foreclosure require waiting periods of two to seven years depending on circumstances.
Banks, credit unions, and mortgage companies all originate conventional loans with varying overlays beyond baseline Fannie Mae and Freddie Mac guidelines. Some lenders accept 620 scores while others require 660 or higher for approval.
Portfolio lenders sometimes offer more flexible terms than those selling loans immediately to the secondary market. Rate differences between lenders can span 0.25% to 0.50% on the same day for identical borrower profiles.
Working with a broker provides access to multiple wholesale lenders simultaneously. This comparison shopping helps identify which lender's specific overlays best match your financial situation.
Conventional loans dominate Burlingame transactions because they accommodate properties exceeding FHA loan limits while avoiding jumbo loan scrutiny. Buyers appreciate avoiding government program restrictions on property condition and resale.
Timing your rate lock matters significantly in the Peninsula market. A strong pre-approval with verified assets and income positions you competitively against other conventional financing buyers.
Consider making a larger down payment if it eliminates PMI, as this monthly savings often exceeds the return on keeping those funds invested elsewhere. Run actual numbers rather than assuming conventional wisdom applies to your situation.
FHA loans allow lower credit scores and down payments but charge ongoing mortgage insurance for the loan's life on most purchases. Conventional loans drop PMI once you reach 20% to 22% equity through payments or appreciation.
Jumbo loans cover amounts exceeding conforming limits but require larger down payments and reserves. Conventional conforming loans offer the sweet spot for many Burlingame properties, balancing loan amount capacity with qualification ease.
VA loans provide superior terms for eligible veterans, including zero down payment and no PMI. Conventional loans serve the broader market without military service requirements.
San Mateo County's higher cost of living affects debt-to-income calculations, as property taxes and homeowners insurance consume larger portions of monthly housing payments. Lenders account for actual local costs when qualifying borrowers.
Burlingame's proximity to major employers in tech and finance means lenders commonly see stock options, bonuses, and RSUs as income sources. Conventional underwriting can incorporate these with proper documentation and vesting schedules.
Older housing stock in established neighborhoods sometimes requires appraisers to look beyond city limits for comparable sales. This rarely affects conventional loan approval but can influence appraised values and loan amounts.
Most lenders require 620 minimum, though 740+ scores access the best rates. Rates vary by borrower profile and market conditions. Mid-tier scores between 660-739 still qualify but at slightly higher rates.
First-time buyers can put down as little as 3%, while repeat buyers typically need 5% minimum. Reaching 20% down eliminates private mortgage insurance and often unlocks better rate pricing.
Yes, conventional loans finance condos and townhouses if the project meets lender warrantability requirements. The HOA must maintain proper insurance, reserves, and owner-occupancy ratios for approval.
Conventional conforming loans currently max out at loan amounts below many Burlingame home prices. Properties requiring larger loans need jumbo financing, which demands higher down payments and reserves.
Self-employed borrowers qualify using two years of tax returns and current profit-loss statements. Lenders average income across both years, so stable or increasing earnings help. Business write-offs reduce qualifying income.
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.