todd-kent-178j8tJrNlc-unsplashConventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. While many think that a 20% *down payment is required for all conventional loans, as little as 3%* down payment is available for first time home buyers with good credit and 5%* down is available for all borrowers.

Common Conventional Loans Questions:

What credit score do I need to qualify?
– Conventional financing requires a 620 minimum credit score although many factors tie into being approved other than the minimum required credit score.

How much do I need for a down payment?
– First-time home buyers (definition - have not owned a home in the last three years) may only be required to put 3% down for those that qualify. If you are not a first-time home buyer, the minimum down payment is 5%.

What are the conforming loan limits?
– Central Valley $726,200 – San Luis Obispo County along with other large high-priced areas is $911,950.

Will I have mortgage insurance sometimes referenced as PMI (private mortgage insurance) when utilizing a Conventional home loan?
– If you put less than 20% down payment mortgage insurance may be required. If a borrower was to put 20% or more down mortgage insurance would not be required.

Are the sellers allowed to cover any of the buyers closing costs?
– If a borrower is putting down payment less than 10% the max seller’s concessions are 3% of the purchase price. If the borrower is putting a down payment of 10% or more the seller can cover up to 6% of the purchase price in seller’s concessions.

This program has no income restrictions and is available in all areas we serve such as Hanford, Lemoore, Corcoran, Coalinga, and all of Kings, Fresno, and Tulare counties. For more information contact us at 559-589-6044 or email for one of our trusted loan officers at

*Please visit our Disclosures page for more details for all loan types.