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Conventional Loans in Dixon
Dixon's housing market sits in a sweet spot for conventional financing. Most properties fall well within conforming limits, making conventional loans the default choice for buyers with decent credit.
You're competing with Sacramento commuters and local families who know conventional typically beats FHA on pricing. Sellers here prefer conventional offers because they close cleaner and faster.
You need 620 minimum credit for conventional approval, but 740+ gets you meaningful rate breaks. Most lenders want two years of stable income and debt-to-income under 45%.
Down payment starts at 3% for first-time buyers, 5% for repeat buyers. Put down 20% and you skip mortgage insurance entirely—that's real money every month.
Your job history matters more than most borrowers think. Two years at the same employer or in the same field keeps underwriters happy.
We shop your scenario across 200+ lenders because rate spreads on conventional loans can hit half a point between banks. That's $100+ monthly difference on a typical Dixon purchase.
Credit unions sometimes undercut big banks by a quarter point, but their underwriting takes longer. Portfolio lenders offer flexibility on income documentation that Fannie Mae won't touch.
Wholesale pricing beats retail every time. Direct lender ads promising low rates usually can't compete with broker access to investor pricing.
I push every Dixon client toward 5% down minimum if they can swing it. The 3% programs carry pricing hits that cost more than waiting two months to save another 2%.
Watch your credit in the 60 days before applying. A new car loan or maxed credit card can drop your score 30 points and cost you the good pricing tier.
Most borrowers overthink rate and ignore closing costs. A lender offering 6.5% with $8K in fees often costs more than 6.75% with $3K in fees over five years.
FHA looks tempting with 3.5% down, but the mortgage insurance never drops off on loans after 2013. Conventional MI cancels at 78% loan-to-value—that's a real exit strategy.
Jumbo loans kick in above $806,500 in Solano County. If you're close to that line, sometimes paying down to conforming limits saves more than the lower jumbo rate offers.
ARMs make sense if you're leaving Dixon in five years, but most buyers here stay longer than they expect. The 30-year fixed protects against rate shock.
Dixon properties built before 1978 trigger lead paint inspections that can delay conventional closings. Budget extra time if you're buying older homes near downtown.
Septic systems are common outside city limits. Conventional lenders require septic inspections and certifications that FHA doesn't always demand—add $400-600 to your budget.
Well water properties need testing for conventional approval. Results take 7-10 days and occasionally kill deals when contamination shows up.
Minimum is 620, but 740+ gets you the best rates. Every 20-point jump in score can drop your rate by an eighth of a point.
First-time buyers can go as low as 3%, repeat buyers need 5%. You'll pay mortgage insurance until you hit 20% equity either way.
Yes, put down 20% or more. Some lenders offer lender-paid MI with a higher rate, but the math rarely works in your favor.
Standard timeline is 30 days from application to closing. Septic or well properties add 7-10 days for inspections and testing.
Absolutely, but expect septic and well inspections. Lenders want proof those systems work and won't cause post-closing problems.
Conventional wins if you have 620+ credit and 5% down. Lower rates and cancellable mortgage insurance save money long-term.
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.