California Conventional Loans
As Low as 3% Down

A conventional loan is a mortgage that isn't backed by a government agency (like FHA, VA, or USDA). Instead, it follows guidelines set by Fannie Mae and Freddie Mac. Conventional loans offer competitive rates, flexible terms, and the ability to cancel PMI once you reach 20% equity. They're ideal for California buyers with good credit (620+) who want lower long-term costs.

The minimum credit score for a conventional loan is 620, but you'll get better rates with a score of 680 or higher. Borrowers with 740+ credit scores qualify for the best available rates. LendyWendy matches you with lenders who specialize in your credit profile to find competitive options.

Conventional loans require as little as 3% down for first-time homebuyers through programs like Fannie Mae HomeReady and Freddie Mac Home Possible. Standard conventional loans typically require 5% down, while putting 20% down eliminates the need for PMI entirely.

California conforming loan limits for 2026 range from $832,750 in standard counties to $1,249,125 in high-cost areas like Los Angeles, San Francisco, and Orange County. San Diego County has a limit of $1,077,550. Loans above these limits require jumbo financing.

Yes! PMI on conventional loans can be cancelled once you reach 20% equity (80% LTV). This is a major advantage over FHA loans, which require mortgage insurance for the life of the loan. Your lender must automatically cancel PMI when you reach 22% equity.

Conventional loans are often better for buyers with good credit (680+) because they offer lower PMI costs and the ability to cancel PMI. FHA loans are better for buyers with lower credit scores (580-620) or limited down payment funds. LendyWendy can help you compare both options to find the best fit.

Conventional loans typically close in 30-45 days, often faster than FHA or VA loans because they have fewer bureaucratic requirements. With a complete application and responsive borrowers, some conventional loans can close in as few as 21 days.

Yes, conventional loans can be used for primary residences, second homes, and investment properties. Investment property conventional loans typically require 15-25% down and have slightly higher interest rates. For investors seeking more flexibility, DSCR loans may be a better option.