What is a Conventional Loan?
Conventional loans are the most common type of mortgage in California, making up the majority of home financing. They aren’t backed by the government, which means they offer flexibility in terms, rates, and property types. Whether you’re a first-time buyer, move-up homeowner, or investor, conventional financing can be a great fit.​
Low Down Payments
As little as 3% down for qualified buyers.
Competitive Rates
Often lower than FHA or USDA if you have good credit.
Cancel PMI
Mortgage insurance can be removed once you reach *20% equity.
Wide Property Eligibility
Homes, condos, townhouses, even second homes or rentals.
Simple Payment Choices
Pick a steady fixed rate or a flexible adjustable rate
*Mortgage insurance can be removed once you reach *22% equity; however most servicers require 78%.
Grow Your Vision
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What is a conventional loan?A conventional loan is the most common type of mortgage in California. Unlike FHA or VA loans, it’s not backed by the government. That gives you more flexibility in down payments, loan terms, and property types.
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How much do I need for a down payment?First-time homebuyers may qualify with as little as 3% down when they are purchasing a home in California. Many buyers choose 5–20% to lower their monthly payment.
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Do I need a perfect credit score?No. Conventional loans usually start at 620 FICO. The better your score, the more likely you’ll qualify for lower interest rates.
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Do I have to pay mortgage insurance?Only if you put less than 20% down. The good news is that private mortgage insurance (PMI) can be removed once you build *20% equity. *Most servicers will require closer to 78% equity.
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How long does it take to close?With today’s digital process, many conventional loans can close in as little as 2–3 weeks.
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Can I buy a rental or vacation home with a conventional loan?Yes! Conventional loans work for primary homes, second homes, and investment properties.
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Are conventional loans better than FHA or VA?It depends. FHA and VA loans are great for certain buyers, but conventional loans offer flexibility, no upfront funding fees, and the ability to drop PMI. We’ll help compare all your options.