We help California homebuyers secure the right conventional mortgage with flexible terms and competitive rates.With a conventional loan, you can purchase your dream home with as little as 3% down, build equity faster, and enjoy long-term stability — all without government loan restrictions.
Conventional Loans in California
About
What Is a Conventional Loan?
A conventional loan is a private mortgage that “conforms” to the standards set by Fannie Mae and Freddie Mac rather than being insured by the federal government.
In 2026, these loans remain the most popular choice for California homebuyers due to the increased FHFA loan limits, which now reach up to $832,750 for standard areas and up to $1,249,125 in high-cost counties like Los Angeles, Orange County, and the Bay Area.
Conventional loans are ideal for borrowers with a credit score of 620 or higher. They offer unmatched flexibility, allowing you to secure a primary residence with as little as 3% down (for first-time buyers), or even finance a vacation home or investment property.
This versatility makes them a powerful tool for building a diverse real estate portfolio in California.
You may qualify for a conventional home loan if you meet these updated 2025 requirements:
- Credit Score: Minimum 620 or higher (Note: Scores above 740 often unlock the lowest interest rates).
- Down Payment: As low as 3% for first-time buyers (via HomeReady or Home Possible) and 5% for repeat buyers.
- Debt-to-Income Ratio (DTI): Typically 45% or below, though automated underwriting may allow up to 50% for strong profiles.
- Loan Limits: Borrow up to $832,750 in standard areas or $1,249,125 in high-cost California counties.
- Stable Income & Employment: Verified history for at least two years (Special programs available for Self-Employed borrowers).
- Property Types: Eligible for Primary Residences, Second Homes, or Investment Properties (up to 4 units).
Benefits
Benefits of a Conventional Loan
3% Down Payment Programs
Take advantage of Fannie Mae HomeReady or Freddie Mac Home Possible for low-income or first-time buyers in California.
Avoid upfront funding fees
Conventional loans do not require the 1.75% FHA upfront mortgage insurance premium or VA funding fees, keeping your closing costs lower.
No Lifetime Private Mortgage Insurance (PMI)
Unlike FHA loans, conventional loan PMI is cancelable once you reach 20% equity, saving you thousands over the life of the loan.
Flexible Property Options
California investors can use conventional financing for second homes or multi-unit investment properties (up to 4 units) with as little as 15-20% down.
Competitive Interest Rates
Enjoy stable and predictable monthly payments.
Faster Loan Process
Streamlined approval with modern digital tools.
Types
Types of Conventional Loans We Offer
Fixed-Rate Mortgage
Best For: Long-term buyers
Highlights: Consistent monthly payments with 15–30 year terms
Adjustable-Rate Mortgage (ARM)
Best For: Short-term homeowners
Highlights: Lower initial rate for 5–10 years
Conventional Jumbo Loan
Best For: High-value California properties
Highlights: Financing for homes above standard loan limits
HomeReady® & Home Possible®
Best For: First-time or low-income buyers
Highlights: Low down payment and reduced PMI
Comparison
Conventional Loan vs. FHA Loan
Conventional Loan
- Down Payment: 3–20%
- Credit Score: 620+
- PMI: Removable at 20% equity
- Property Type: Primary, second, or investment
- Government Backed: No
FHA Loan
- Down Payment: 3.5%
- Credit Score: 580+
- PMI: Required for life of loan
- Property Type: Primary only
- Government Backed: Yes
FAQs
Frequently
Asked Questions
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
Can I buy an investment or vacation home with a conventional loan?
Yes! Conventional loans can be used for primary, secondary, and investment properties.
When can I remove PMI?
Once you’ve built 20% equity, you can request to remove PMI and reduce your monthly payment.
Can I refinance a conventional loan later?
Absolutely. You can refinance to lower your rate or shorten your term anytime.
What if I don’t have 20% down?
You can still qualify with as little as 3–5% down and pay PMI temporarily.
Can I buy an investment property in California with a conventional loan?
Yes, conventional loans are the primary vehicle for CA investment properties, typically requiring a 15-20% down payment.
Is 3% down available for California conventional loans?
Yes, through the HomeReady and Home Possible programs for qualified first-time buyers.
What is the maximum conventional loan limit in California for 2026?
The baseline limit is $832,750, but in high-cost areas like the Bay Area and Southern California, it goes up to $1,249,125.
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
JL Lending Team
Why Choose Us for Conventional Loan?
Local Experts
Serving California’s veterans with deep knowledge of the state’s housing market.
Fast, Tech-Enabled Process
Apply, upload documents, and track your loan online.
Personalized Guidance
We’re not tied to one lender — we find the best loan for you.
Contact Us
Ready to Get Started with Your Conventional Loan?
Take the first step toward homeownership with a conventional loan that fits your budget and goals.
We’ll guide you every step of the way — from pre-approval to closing.