Exeter Mortgage FAQ: Your Central Valley Home Financing Questions Answered

FHA loans start at 580, but you'll get better rates at 640+. Conventional loans typically require 620 minimum, though some portfolio lenders go lower for strong compensating factors.

FHA requires 3.5% down, conventional loans 3-5% for primary homes. USDA loans offer zero down if the property qualifies as rural, which covers most areas outside Exeter city limits.

Many properties in and around Exeter qualify for USDA financing. We check eligibility by address since boundaries shift, but most rural Tulare County areas meet USDA criteria.

Lenders average your farm income over two years using tax returns. Depreciation often gets added back to boost qualifying income, which helps farmers who show lower taxable income.

Bank statement loans work well for farmers and ag contractors who write off significant expenses. We analyze 12-24 months of deposits instead of tax returns to determine income.

Conventional and FHA dominate for primary homes. USDA fits rural properties with zero down, while bank statement and 1099 loans solve self-employment documentation challenges.

Standard purchases close in 21-30 days. Complex income like farm operations or 1099 contractors can add a week, while USDA loans often take 30-45 days due to additional rural certification.

W-2 buyers need paystubs, tax returns, and bank statements. Self-employed borrowers add business returns and profit-loss statements, or use bank statement loans to skip tax return analysis entirely.

Conventional loans allow up to 10 financed properties. DSCR loans skip personal income review entirely, approving based on rental income alone, which works for investor-focused buyers.

Budget 2-5% of purchase price for closing costs. This covers appraisal, title, escrow, lender fees, and prepaid taxes and insurance that vary by property and loan type.

Points make sense if you'll keep the loan 5+ years. In Exeter's market, buyers planning short-term ownership should skip points and take slightly higher rates instead.

Private mortgage insurance costs 0.3-1.5% annually on conventional loans under 20% down. FHA charges upfront and monthly MI regardless of down payment, which never cancels without refinancing.

FHA allows lower credit scores and 3.5% down but charges mandatory mortgage insurance. Conventional loans require higher credit but drop PMI at 20% equity and offer better rates for strong borrowers.

Veterans get zero down VA loans with no PMI anywhere in California. Exeter has no special VA restrictions, and rural property types rarely cause issues for VA appraisals.

Tulare County's conforming limit is $806,500 for 2025. Few Exeter properties exceed that threshold, but jumbo loans require 700+ credit, larger reserves, and typically 10-20% down.

Rates vary by borrower profile and market conditions. Credit scores, down payment, loan type, and debt ratios all impact your rate more than property location within California.

Most loans cap DTI at 43-50%, meaning total monthly debts can't exceed that percentage of gross income. FHA and VA stretch higher with strong credit or compensating factors.

ITIN loans use tax ID numbers instead of Social Security for approval. These portfolio loans typically require 15-20% down and slightly higher rates but don't require citizenship or legal residency.

DSCR loans approve based on rental income covering the mortgage payment, ignoring your personal income entirely. They fit investors with complex tax returns or multiple financed properties.

Fixed rates lock your payment for 15-30 years. ARMs start lower but adjust after 3-10 years, which benefits buyers who'll sell or refinance before the first adjustment.

Areas near downtown Exeter and the school district boundaries see consistent demand. Rural acreage properties outside city limits attract different buyers seeking space and ag exemptions.

Appraisers use comparable sales within wider radius for rural homes since fewer sales exist. Unique features like wells, septic, or ag improvements require specific expertise from the appraiser.

FHA and conventional loans finance manufactured homes if permanently affixed to owned land. The home must meet HUD code, and appraisers verify foundation type during the inspection process.

Bridge loans let you buy before selling your current home. These short-term loans work for equity-rich borrowers who need 3-12 months to sell but can't qualify carrying both mortgages.

Interest-only loans defer principal payments for 5-10 years, lowering initial payments significantly. They fit investors maximizing cash flow or high-income buyers expecting income growth or property appreciation.

All major loan programs accept gift funds from family members. Lenders require a gift letter confirming the funds don't need repayment, plus documentation showing the transfer.

FHA's 3.5% down works for lower credit scores. Conventional 97 LTV matches that down payment with better rates for 680+ credit, while USDA offers zero down for qualifying rural properties.

Lenders require proof of insurance before funding. In Exeter, expect $800-1,500 annually for standard coverage, more for rural properties with fire risk or additional acreage requiring separate policies.

You can transfer your tax base to a new California home if you're 55+, disabled, or a wildfire victim. This benefit works once and requires filing within certain timeframes after purchase.

Rate locks require a property address and purchase contract. We can show current rates and structure your pre-approval, but the formal lock happens after you're in contract.

Pre-qualification estimates what you might afford based on stated information. Pre-approval verifies income, assets, and credit through documentation, giving you credible proof for sellers that you can close.

Lenders typically approve 43-50% of gross income for total debt payments. Your actual comfort level should factor other expenses, but maximum approval usually lands around 4-5x annual income.

California offers CalHFA programs with 3-3.5% down payment assistance. These work with FHA or conventional loans and include income limits that fit most Tulare County buyer profiles.

You can renegotiate price, bring extra cash to cover the gap, or cancel using your appraisal contingency. Some buyers split the difference with sellers in competitive markets.

Always inspect before removing contingencies. Rural properties need well, septic, and roof inspections beyond standard home checks, especially on older Central Valley properties with ag history.

Look for brokers with multiple lender relationships, not just one bank. We access 200+ wholesale lenders, which means better rates and more loan options than single-lender shops offer.