Conventional Loans
The Gold Standard in Home Financing
If you have solid credit and a steady income, a conventional loan is often the smartest, most cost-effective path to homeownership. And I am here to help you get the best one.
Get My Free Rate QuoteAs Low as 3% Down | Rates Locked Fast | Close in 21 Days
← All Loan OptionsA Loan You Can Feel Good About
I have been in this business long enough to know that when you are buying a home, you do not just want a loan. You want to feel confident that you made the right choice. That you got a fair deal. That someone actually looked out for you.
That is what I think about every time I help someone get into a conventional loan.
A conventional mortgage is the most widely used home loan in the country for a reason. When it is the right fit, it offers some of the lowest rates available, flexible terms, and no government red tape. For buyers who qualify, it is hard to beat.
The key is making sure it actually is the right fit for you. That is where I come in. I will look at your full picture, compare your options honestly, and tell you straight whether a conventional loan makes sense or whether something else would serve you better.
Because my job is not to close a deal. My job is to change your financial life.
What Exactly Is a Conventional Loan?
A conventional loan is a mortgage that is not backed or insured by a government agency like the FHA, VA, or USDA. Instead, it follows guidelines set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that purchase most conventional mortgages from lenders.
Because these loans meet standardized guidelines, lenders can sell them on the secondary market, which keeps money flowing and rates competitive. That is why conventional loans often offer better pricing than government-backed options for qualified borrowers.
Conforming Conventional Loans
These loans fall within the loan limits set by the Federal Housing Finance Agency (FHFA), which change annually. In most California counties, the 2026 conforming loan limit is $766,550 for a single-family home. In high-cost areas like Los Angeles County, the limit is $1,249,125 for a single-family home (with higher limits for 2-, 3-, and 4-unit properties).
Conforming loans offer the most competitive rates because lenders know they can easily sell them to Fannie Mae or Freddie Mac.
Non-Conforming (Jumbo) Conventional Loans
When a loan exceeds the conforming limit, it becomes a jumbo loan. These are still conventional in structure, but they are held by the lender rather than sold, which means slightly stricter qualification requirements and modestly higher rates. If you are purchasing a higher-value property in Southern California, we can explore jumbo options that still offer excellent terms.
2026 Conventional Loan Limits — Southern California
Here is a quick reference for conforming loan limits in the counties I serve most:
| County | Single-Family | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Los Angeles County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Orange County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| San Diego County | $1,104,000 | $1,413,350 | $1,708,400 | $2,123,100 |
| Riverside County | $832,750 | $1,066,250 | $1,288,800 | $1,601,750 |
| San Bernardino County | $832,750 | $1,066,250 | $1,288,800 | $1,601,750 |
| Ventura County | $1,035,000 | $1,325,000 | $1,601,600 | $1,990,450 |
Note: Loan limits are updated annually by the FHFA. Contact me for the most current figures.
Is a Conventional Loan Right for You?
A conventional loan tends to be the strongest option for buyers who meet the core qualifications. Here is an honest look at who benefits most:
You Are a Strong Candidate If…
- ✓ Your credit score is 620 or higher (best rates at 740+)
- ✓ You have 3–20% available for a down payment
- ✓ Your debt-to-income ratio is 45% or lower
- ✓ You have steady, verifiable income
- ✓ You want to avoid FHA mortgage insurance for the life of the loan
A Conventional Loan May Not Be the Best Fit If…
- • Your credit score is below 620
- • You are a veteran eligible for a VA loan (VA is often a better deal)
- • You have minimal savings and want the lowest possible down payment
Not sure which loan is right for you? That is exactly what our free consultation is for. I will review your full situation and give you a straight answer.
Down Payment Options — From 3% to 20%
One of the biggest myths I hear is that you need 20% down to get a conventional loan. That has not been true for years.
3% Down — HomeReady and Home Possible: Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow qualified buyers to put down as little as 3%. Minimum 620 credit (660+ preferred). Income limits apply. Homebuyer education required.
5% Down — Standard Conventional: The most common entry point. Full range of conventional products without income restrictions.
10% Down: Often lower PMI and stronger offers in competitive markets.
20% Down — No PMI: Eliminate Private Mortgage Insurance entirely, typically saving $100–300 per month.
Down payment assistance programs exist even for conventional loans. Ask me what is available in your area.
Understanding Private Mortgage Insurance (PMI)
If you put less than 20% down on a conventional loan, you will pay PMI. PMI typically costs between 0.5% and 1.5% of your loan amount per year. The good news: unlike FHA, conventional PMI automatically cancels when your loan balance reaches 80% of the original appraised value.
Options to ask about: Lender-Paid PMI (slightly higher rate, no monthly PMI), Piggyback 80/10/10 (no PMI), or Single Premium PMI (pay upfront at closing).
How the Conventional Loan Process Works with Me
Step 1: Free Consultation — We start with a conversation. By the end of that first call, you will know what you qualify for. Step 2: Pre-Approval (1–3 days) — Documentation submitted; you get a letter to make offers. Step 3: Shop and make an offer. Step 4: Appraisal and underwriting (Days 7–21). Step 5: Clear to Close and closing (Days 21–30). My goal is always 21–30 days to closing.
Why Work with Me on Your Conventional Loan
I Shop the Market for You. I have access to dozens of lenders and compare options to find the best rate, cost, and terms for you.
I Tell You the Truth. If a conventional loan is not the best option, I will tell you. If FHA would save you money, I will show you the numbers.
I Stay with You Through the Whole Process. From pre-approval through closing, I stay in contact and handle problems before they become emergencies.
That is what drives me. Not the transaction. The outcome.
Conventional Loan FAQ
What credit score do I need? Minimum 620; 680+ for best options; 740+ for most competitive pricing.
Can I use gift money? Yes, with conditions. Gift must be from an approved donor; signed gift letter required.
How much can I borrow? In Los Angeles County, 2026 conforming limit is $1,249,125 for single-family. Riverside/San Bernardino: $766,550. Jumbo options above limits.
Self-employed? Yes. Two years of personal and business tax returns. Bank statement loans may be an alternative if taxable income is low.
When does PMI go away? Automatically at 78% of original value; you can request cancellation at 80% LTV.
Ready to Get Started?
The first step is simple: a free, no-obligation conversation. No pressure. No sales pitch. Just an honest look at your situation and a real answer about what you qualify for.
Book Your Free Conventional Loan ConsultationAlso explore: FHA · DSCR · Reverse Mortgages · Self-Employed · Hard Money · Commercial