Mortgage Loans & Home Financing

Plan Summary

Valley First mortgage lending covers the full spectrum of home financing — from low-down-payment government-backed loans to jumbo mortgages for properties above conforming limits, all underwritten locally.

A Valley First mortgage is likely the largest financial commitment you will ever make, and Valley First approaches it accordingly. Every basis point on the rate and every day added to the closing timeline matters. Valley First mortgage loan officers are NMLS-registered professionals who work out of California branches, not a remote call center. They know the Fresno market inside out because Valley First has been operating here since 1998. They know what appraisers in Bakersfield look for. Valley First loan officers have closed transactions with the title companies, inspectors, and insurance agents your transaction will involve.

Valley First underwriting reviews applications locally rather than routing them through an automated system — if a file needs a manual override, someone at Valley First reads it and makes a judgment call. That is the Valley First difference. If a file needs a manual override — a letter of explanation for a two-month employment gap, for instance — someone in California reads it and makes a judgment call. That is the difference between closing on schedule and losing a purchase contract.

Mortgage Product Comparison

Seven Valley First mortgage programs cover the range from zero-down government-backed loans to jumbo financing for higher-priced California properties.

Loan Program	Rate Type	Min. Down Payment	Term Options	Credit Score Minimum	Best For
Conventional Fixed	Fixed	3%	15, 20, 30 yr	620	Buyers with good credit and stable income
Conventional ARM	Adjustable	3%	5/1, 7/1, 10/1	640	Buyers planning to sell or refinance within 5-10 years
FHA Loan	Fixed	3.5%	15, 30 yr	580	First-time buyers or lower credit scores
VA Loan	Fixed	0%	15, 30 yr	No minimum (lender overlay: 620)	Active military, veterans, eligible spouses
USDA Loan	Fixed	0%	30 yr	640	Rural and suburban eligible areas
Jumbo Loan	Fixed or ARM	10-20%	15, 30 yr	700	Properties above conforming loan limits
HELOC	Variable	N/A (equity-based)	10-yr draw, 20-yr repay	660	Existing homeowners with equity

Rates quoted as of June 2026. Actual rate depends on credit score, loan-to-value ratio, property type, and loan amount. All Valley First loans subject to credit approval. NMLS #1234567. For questions about mortgage terms and federal lending protections, the Consumer Financial Protection Bureau provides educational materials including a comprehensive guide to the Loan Estimate and Closing Disclosure forms.

FHA, VA, and USDA Loan Programs

Government-backed mortgage programs reduce the barriers to homeownership through lower down payments, flexible credit requirements, and, in the case of VA and USDA loans, zero-down financing.

Valley First FHA loans, insured by the Federal Housing Administration, are the most widely used government-backed program. With a minimum down payment of 3.5% and credit score requirements as low as 580, FHA financing opens the door for first-time homebuyers and those rebuilding credit. FHA loans do carry mortgage insurance premiums for the life of the loan if you put less than 10% down, so borrowers who later build substantial equity often refinance into a conventional loan to drop the insurance.

Valley First VA loans are a benefit of military service, not a loan program with inferior terms — and the numbers bear this out. Eligible veterans, active-duty service members, and surviving spouses can finance 100% of a home's purchase price with no mortgage insurance requirement. The VA funding fee, which ranges from 1.25% to 3.3% depending on down payment and prior use, can be rolled into the loan amount. Valley First has an NMLS-registered loan officer who specializes in VA transactions and understands the nuances of the VA appraisal process, entitlement calculations, and residual income underwriting.

Valley First USDA loans serve homebuyers in USDA-designated rural and suburban areas. Large portions of the San Joaquin Valley outside Fresno, Bakersfield, and Modesto city centers qualify. USDA financing requires zero down payment and offers below-market mortgage insurance rates. The property must be in an eligible area and the borrower's household income cannot exceed 115% of the area median — limits that are generous enough to cover most moderate-income families in Central California.

Home Equity Lines of Credit

A Valley First HELOC lets you borrow against your home equity with a variable-rate revolving credit line — draw funds as needed during a 10-year access period and repay over 20 years.

Valley First homeowners with accumulated equity often overlook HELOCs as a financing tool, defaulting instead to credit cards or personal loans for major expenses. A HELOC typically offers a substantially lower interest rate than unsecured credit because the loan is collateralized by the property. Rates are indexed to the prime rate plus a margin determined by your credit profile and combined loan-to-value ratio.

Common uses for a Valley First HELOC include home renovations that increase property value, debt consolidation at a lower blended rate, covering tuition expenses with more flexibility than a fixed-term education loan, or establishing a standby credit line for irregular cash flow needs. Valley First HELOCs carry no annual fee, no application fee for qualified borrowers, and no prepayment penalty. Interest on a Valley First HELOC may be tax-deductible if the funds are used for home improvement — consult a tax professional for guidance on your specific situation. For objective information about home equity borrowing, the CFPB publishes a guide comparing HELOCs and home equity loans side by side.

The Valley First Mortgage Process

From pre-qualification to closing, a Valley First mortgage typically takes 30 to 45 days — with pre-qualification decisions returned within 24 hours of application.

Step 1: Pre-Qualification

Submit basic financial information to Valley First — income, assets, debts — through our secure online portal or in person at any branch. Pre-qualification does not require a hard credit inquiry and gives you a realistic purchase price range. Most applicants receive a pre-qualification letter within one business day.

Step 2: Application and Rate Lock

Once you have a signed purchase agreement, your loan officer converts the pre-qualification into a full application. You will upload pay stubs, tax returns, bank statements, and identification documents. At this stage you can choose to lock your rate; Valley First offers rate locks of 30, 45, or 60 days with a one-time float-down option if rates improve before closing.

Step 3: Processing and Underwriting

A dedicated Valley First loan processor verifies employment, orders the appraisal, and assembles the file for underwriting. The Valley First underwriter reviews your full financial picture — including debt-to-income ratio, asset reserves, and property valuation — and issues a conditional approval, a final approval, or a request for additional documentation.

Step 4: Closing

Once your loan receives final approval, closing is scheduled at a title company of your choice through Valley First. You will receive a Closing Disclosure at least three business days before signing enumerating every cost line by line. On closing day, you sign the documents, the funds are disbursed, and you receive the keys.

What Members Are Saying