Conventional Loans
Traditional mortgage financing with competitive rates and flexible terms for qualified California homebuyers. Let us help you find the right conventional loan for your situation.
Call (707) 760-9521What is a Conventional Loan?
A conventional loan is a mortgage that is not backed by a government agency such as the FHA, VA, or USDA. These loans are offered through private lenders and typically require stronger credit and a down payment, but offer competitive interest rates and flexible terms.
Conventional loans are the most popular type of mortgage in California and are ideal for buyers with good credit, stable income, and the ability to make a down payment. They can be used to purchase a primary residence, second home, or investment property.
Key Features & Benefits
Conventional loans offer a number of advantages for qualified borrowers.
Low Down Payment Options
Down payments as low as 3% for first-time homebuyers and 5% for repeat buyers.
Competitive Interest Rates
Borrowers with strong credit scores typically qualify for the most competitive rates available.
No Upfront Mortgage Insurance
Unlike FHA loans, conventional loans do not require an upfront mortgage insurance premium.
PMI Can Be Removed
Private mortgage insurance can be cancelled once you reach 20% equity in your home.
Flexible Loan Terms
Choose from a variety of fixed-rate and adjustable-rate options with terms from 10 to 30 years.
Higher Loan Limits
Conforming loan limits up to $766,550 in most California counties, with higher limits in high-cost areas.
Typical Requirements
Credit & Income
- Credit score of 620 or higher (higher scores get better rates)
- Stable employment history (typically 2 years)
- Documented income through pay stubs, W-2s, or tax returns
- Debt-to-income ratio typically below 43%
Down Payment & Assets
- Down payment of 3–20% of the purchase price
- PMI required if down payment is less than 20%
- Sufficient cash reserves after closing
- Gift funds may be allowed for down payment
Is a Conventional Loan Right for You?
A conventional loan may be the best fit if you:
- Have a credit score of 620 or higher
- Have a stable employment history and documented income
- Can make a down payment of at least 3–5%
- Want to avoid long-term mortgage insurance (possible with 20% down)
- Are purchasing a primary residence, second home, or investment property
- Want flexible loan term options from 10 to 30 years
Not sure if a conventional loan is right for you? Our experienced loan officers will review your situation and help you compare all available options at no cost or obligation.
This is not a commitment to lend. All loans subject to credit approval, underwriting guidelines, and property appraisal. Rates, terms, and program availability are subject to change without notice. Friends & Family Financial | NMLS #1269265 | DRE #01968186 | Licensed by the California Department of Real Estate.
Ready to Get Started?
Contact us today for a free consultation. We'll help you find the right conventional loan for your home purchase or refinance.