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Conventional Loans in Millbrae
Millbrae homebuyers benefit from conventional loans' versatility in San Mateo County's competitive real estate market. These traditional mortgages work for primary residences, second homes, and investment properties alike.
Conventional financing offers borrowers control over their loan terms without government program restrictions. You can choose from 10, 15, 20, or 30-year terms and decide on down payment amounts that fit your budget.
San Mateo County's proximity to Silicon Valley makes conventional loans popular with tech professionals and established buyers. The program rewards strong credit profiles with favorable pricing and reduced costs.
Most conventional loans require a minimum credit score of 620, though better rates start around 680. Your credit history matters more than with government-backed programs, making clean credit reports essential.
Down payments start at 3% for first-time buyers and 5% for repeat purchasers on primary residences. Investment properties typically need 15-25% down, depending on your overall financial picture.
Lenders calculate your debt-to-income ratio, usually capping it at 43-50%. This includes your new mortgage payment plus existing debts like car loans, student loans, and credit cards.
Cash reserves become important when putting less than 20% down. Expect lenders to verify you have 2-6 months of mortgage payments saved after closing.
Banks, credit unions, and mortgage companies all offer conventional loans in Millbrae. Each lender prices these loans differently based on their investor relationships and overhead costs.
Portfolio lenders sometimes keep conventional loans on their books, offering more flexibility on certain requirements. Others sell loans immediately to Fannie Mae or Freddie Mac, following stricter guidelines.
Rate variations of 0.25-0.50% commonly exist between lenders on identical borrower profiles. This difference equals thousands in interest over your loan's lifetime, making comparison shopping worthwhile.
Mortgage brokers access multiple lenders simultaneously, streamlining your search. They compare pricing across various institutions while you complete just one application.
Private mortgage insurance disappears once you reach 20% equity through payments or appreciation. This contrasts with FHA loans where mortgage insurance often lasts the loan's entire term.
Conventional loans allow seller concessions up to 3-9% depending on your down payment. Sellers can cover your closing costs, buy down your rate, or pay for repairs in competitive situations.
Removing PMI before reaching 20% equity becomes possible through appreciation. If your home value increases significantly, a new appraisal might eliminate this monthly cost early.
Appraisal gaps happen in hot markets when homes sell above appraised value. Conventional loans require you to cover this difference, unlike some government programs with more flexibility.
FHA loans accept lower credit scores and smaller down payments but charge mortgage insurance for the loan's duration. Conventional loans cost less long-term for borrowers with solid credit and stable income.
Jumbo loans kick in when your purchase exceeds conforming loan limits in San Mateo County. These require larger down payments and stronger qualifications than conventional conforming loans.
Adjustable-rate mortgages offer lower initial rates than fixed conventional loans. They make sense if you plan to move or refinance within 5-7 years, but carry rate adjustment risk.
Conforming conventional loans follow Fannie Mae and Freddie Mac guidelines exactly. Non-conforming conventional loans offer more flexibility but typically cost more in interest and fees.
Millbrae's location between San Francisco and Silicon Valley creates strong property values. Conventional loans handle these higher price points well, especially for borrowers with substantial down payments.
San Mateo County property taxes run around 1.2% annually, factoring into your debt-to-income calculations. Lenders include this payment when determining your maximum loan amount.
Millbrae's proximity to SFO airport appeals to frequent travelers and aviation industry workers. Conventional loans finance these properties without special restrictions or noise-related limitations.
Competition from cash buyers in San Mateo County makes conventional loan pre-approval critical. Sellers favor conventional financing over government loans due to fewer appraisal complications and faster closing timelines.
First-time buyers can put down as little as 3%, while repeat buyers need 5% minimum for primary residences. Investment properties typically require 15-25% down. Rates vary by borrower profile and market conditions.
Credit scores above 740 receive the best pricing. Scores between 680-739 see moderate rate increases, while 620-679 face higher costs. Each 20-point increment can change your rate by 0.25-0.50%.
Some lenders offer lender-paid mortgage insurance where they cover PMI in exchange for a slightly higher rate. You might also consider piggyback loans, though these require strong credit and income.
Conventional loans finance 2-4 unit properties with owner occupancy. You need 15-25% down depending on the property type. Rental income from other units can help you qualify.
Standard processing takes 30-45 days from application to closing. Faster timelines are possible with complete documentation and responsive borrowers. Working with local lenders familiar with Millbrae can expedite the process.
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.