Conventional Loans
The most flexible home loan. Built around your numbers.
Conventional loans are not insured by a government agency, which gives you the widest choice of terms, property types and down payments. Strong credit is rewarded with lower costs.
- Low down payment options for qualified buyers
- Mortgage insurance that can come off later
- Primary homes, second homes and investments
No credit pull and no obligation. Prefer to talk? Call or text (949) 910-3943.
At a glance
- Down payment
- Low down payment options
- Mortgage insurance
- Only with a smaller down payment, removable
- Credit score most lenders want
- 620 or higher
- Property types
- Primary, second home, investment
Why conventional
The loan most buyers end up with
If your credit and savings are in reasonable shape, a conventional loan is often the lowest-cost option over time.
Low down payment
Qualified buyers can put down less than many people expect. Gift funds can cover some or all of it on a primary home.
Mortgage insurance you can remove
Private mortgage insurance applies only with a smaller down payment, and it can be removed once you have built enough equity.
Rewards strong credit
Higher credit scores and larger down payments earn better pricing, so your rate reflects your own profile.
Any kind of occupancy
Use it for a primary residence, a second home or an investment property.
No upfront insurance fee
Unlike FHA and VA loans, there is no upfront mortgage insurance premium or funding fee added to the loan.
Choice of terms
A range of fixed-rate terms, plus adjustable-rate options if they fit your plans.
Compare
Conventional vs. FHA vs. VA
How the three most common loans compare.
| Conventional | FHA | VA | |
|---|---|---|---|
| Minimum down payment | Low | Low | None for most eligible buyers |
| Mortgage insurance | With a smaller down payment, removable later | Required, often for the life of the loan | None |
| Upfront fee | None | Upfront premium, usually financed | VA funding fee, waived if exempt |
| Typical minimum credit score | 620 with most lenders | 580 for the minimum down payment | No VA minimum, lender sets its own |
| How you can use the home | Primary, second home or investment | Primary residence | Primary residence |
Typical program terms. Your down payment, rate and fees depend on your full profile.
Want to see a conventional payment at your price range?
Down payment
How your down payment changes the loan
You may not need as much down as you think. Here is how your down payment affects mortgage insurance.
| Down payment | Mortgage insurance | Good to know |
|---|---|---|
| Minimum down payment | Yes | Usually for first-time buyers or income-based programs |
| A larger down payment | Yes, lower as your down payment rises | Can be removed later |
| Enough to avoid mortgage insurance | None | Lower monthly payment |
The cost of mortgage insurance depends on your credit score, down payment and loan term.
Qualifying
Do you qualify?
Typical requirements
- Credit score of 620 or higher with most lenders
- Debt-to-income ratio up to 50% with an automated underwriting approval, lower if the loan is underwritten manually
- Steady, documented income and employment
- Enough funds for your down payment and closing costs
- An appraisal that supports the purchase price
What you will need
- Recent pay stubs and two years of W-2s
- Two years of tax returns if you are self-employed
- Two months of bank statements
- A government-issued photo ID
- Details on any other property you own
The process
From first call to keys in hand
Tell me your goals
A short form or a ten-minute call. No credit pull to get started.
Get pre-approved
I review your income, assets and credit and issue a pre-approval you can shop with.
Find the home
Make an offer with confidence. I will call the listing agent to back it up if that helps you win.
Appraisal to closing
Appraisal, underwriting and closing. I keep you updated at every step.
Common questions
Conventional loan questions, answered
How much do I need to put down?
Qualified buyers on a primary home can put down less than many people expect. Second homes and investment properties typically need a larger down payment. I will show you the options for your situation.
When can I remove mortgage insurance?
You can ask to have it removed once your balance reaches 80% of the home’s original value, and it must come off automatically at 78% if your payments are current. If your home has gained value, a new appraisal can sometimes get you there sooner.
What is the conforming loan limit?
For 2026 the limit for a one-unit home is $832,750 in most counties and up to $1,249,125 in high-cost counties such as Orange County. Above that, ask me about jumbo options.
Can I use gift money for the down payment?
Yes, on a primary residence or second home, from a family member or other approved donor, with a signed gift letter.
Is there a minimum credit score?
Most lenders still look for 620 or higher. Fannie Mae no longer sets a fixed minimum score for loans approved through its automated underwriting system, so the answer depends on your whole file and the lender.
Should I choose conventional or FHA?
It depends mostly on your credit score and down payment. I will price both side by side so you can see the real monthly difference.
Ready to see your conventional loan options?
Tell me a little about what you are looking for and I will come back with your numbers and a clear next step.
This is general information, not a loan offer, rate quote or commitment to lend. Program terms, fees and eligibility can change and depend on your credit, income, property and lender guidelines. Mack Davidson, NMLS #1006831, CA DRE #02086053, E Mortgage Capital, Inc., NMLS #1416824. Equal Housing Opportunity.