🏠 Conventional

Conventional Loans

The gold standard for homebuyers with strong credit. Competitive rates, as low as 3% down, no mortgage insurance with 20% down.

Min Down3%
Min Credit620+
Max LTV97%
Loan Limit$806K
No MI with 20%+ down — lowest long-term cost.
Requirements

Who Qualifies

Conventional loans offer the best rates and flexibility for borrowers with good credit and stable income. No government backing means stricter underwriting but fewer restrictions.

Credit Score: 620+ (740+ for best rates)
Down Payment: 3%–20%+ (20% eliminates PMI)
DTI Ratio: Up to 45% (50% with strong compensating factors)
Loan Limit: Up to $806,500 (conforming); higher with jumbo
Employment: 2-year history; W-2 or self-employed
Occupancy: Primary, second home, or investment

Key Benefits

💵
No PMI at 20% Down
Avoid monthly mortgage insurance, saving hundreds per month.
🏡
Investment & Second Homes
Eligible for investment properties and vacation homes — unlike FHA.
📐
Flexible Terms
10, 15, 20, or 30-year fixed. 5/1, 7/1, or 10/1 ARM options.
🏆
Best Rates for Good Credit
740+ credit score unlocks the most competitive rate tiers.
FAQ

Common Questions

What's the minimum down payment for a conventional loan?

As low as 3% for first-time buyers with qualifying income. Most buyers put down 5–10% to lower their PMI or avoid it altogether.

When does PMI go away?

PMI automatically cancels when your loan balance reaches 78% of the original purchase price. You can also request removal at 80% LTV — call us and we'll walk you through it.

What credit score do I need?

Most conventional loans require a 620+ score, but the best rates go to borrowers at 740+. We have access to lenders across the spectrum.

Can I buy a second home or investment property with conventional?

Yes — conventional loans can be used for primary residences, second homes, and investment properties. Down payment requirements and rates differ by property type.

What's the conventional loan limit for 2025?

The 2025 conforming loan limit is $806,500 for most of California. High-cost areas like Orange County have higher limits. Anything above these limits is a jumbo loan.

Get Your Best Rate Today

Pre-approval in 24 hours. No credit pull required at this stage.

Apply for Conventional Loan →