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 mortgage that’s not backed by a government agency like the FHA or VA. These loans are offered by private lenders and follow the guidelines set by Fannie Mae and Freddie Mac. They’re ideal for borrowers with good credit and steady income who want lower costs over time and more property flexibility.
You may qualify for a conventional home loan if you meet these basic requirements:
- Credit Score: Minimum 620 or higher.
- Down Payment: As low as 3% for first-time buyers; 5–20% for others.
- Debt-to-Income Ratio (DTI): Typically below 45%.
- Stable Income & Employment: Consistent income for at least two years.
- Primary, Secondary, or Investment Home: Conventional loans can be used for all.
Benefits
Benefits of a Conventional Loan
Low Down Payment Options
Start with as little as 3% down.
No Upfront Funding Fees
Unlike FHA or VA loans, there’s no extra government fee.
PMI Can Be Removed
Cancel private mortgage insurance once you reach 20% equity.
Flexible Property Options
Use for a primary home, vacation home, or investment property.
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.
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.