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Conventional Loans in Benicia
Benicia sits at a sweet spot where conventional loans make the most sense for most buyers. You're not dealing with Bay Area jumbo pricing, but you're close enough that lenders treat the area seriously.
Most Benicia properties fall well within conventional loan limits. This means better rates than FHA and no upfront mortgage insurance premium eating into your cash.
You need 620 minimum credit score, but 740+ gets you the best pricing. Most of my Benicia buyers put down 10-20%, though 3% programs exist if your credit is strong.
Debt-to-ratio caps at 50% with compensating factors. Lenders want two years of stable income and reserve funds covering 2-6 months of payments depending on your down payment.
We shop your scenario across 200+ wholesale lenders because rate sheets vary daily. One lender might beat others by 0.25% on a 15-year fixed, while another wins on 30-year terms.
Benicia isn't a tough sell to underwriters. Properties here appraise cleanly and the market history is stable, which means less overlay nonsense from correspondent lenders.
If you're putting down less than 20%, compare PMI costs across lenders. Some charge 50% more than others for identical risk profiles. We eliminate the expensive ones immediately.
Benicia buyers often overlook adjustable-rate conventional loans. If you're not staying past five years, a 5/1 ARM can save you serious money versus locking a 30-year fixed.
FHA loans cost more long-term even with lower down payments. You pay mortgage insurance for the loan's life on most FHA deals, while conventional drops PMI at 78% loan-to-value.
Jumbo loans only matter above $806,500 in Solano County this year. Below that threshold, conventional wins on rate and flexibility every time.
Benicia's older housing stock means appraisers scrutinize condition more than in newer Solano developments. Plan for minor repairs if you're buying a pre-1980 property with deferred maintenance.
Waterfront and Arsenal area properties sometimes need extra underwriting time. Lenders want flood certification and occasionally environmental checks on former industrial parcels.
Minimum 620 to qualify, but 740+ gets you the best rates. Most Benicia borrowers we close have scores between 700-760.
As little as 3% with strong credit and income. Most buyers put down 10-20% to reduce PMI costs and improve their rate.
Yes, with 20% down payment you avoid PMI entirely. Below that, PMI drops automatically when you reach 78% loan-to-value.
With 680+ credit, conventional rates beat FHA by 0.125-0.375%. You also avoid FHA's upfront mortgage insurance premium of 1.75%.
Conforming limit is $806,500 for single-family homes in 2024. Above that you need a jumbo loan with stricter requirements.
Not usually, but appraisers look closer at deferred maintenance. Address obvious repairs before appraisal day to avoid conditions.
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.