Conventional Loans

Conventional Loans

A conventional loan is a mortgage that is not backed or secured by a government entity. It is available through and guaranteed by either a private lender or one of the two government-sponsored enterprises, Fannie Mae and Freddie Mac.

Some of the benefits of conventional loans include:

  • Loan amounts up to $647,200 (2022) in California
  • Fixed or adjustable rates
  • Down payments as low as 3% for primary residences
  • Primary, second, and investment property options

A conventional mortgage is best for borrowers with a minimum of a 620 FICO score, stable employment and income, and a debt-to-income ratio of less than 50%.

Down payment requirements can vary based on your situation and the type of loan or property you’re buying and can range from 3% to 20% or more. If you put down less than 20% on a conventional loan, you’ll be required to pay for private mortgage insurance (PMI).

Most conventional mortgages are referred to as “conforming loans,” which means they meet the requirements to be sold to Fannie Mae or Freddie Mac. For a conforming conventional loan, your loan must fall within the loan limits set by Fannie Mae and Freddie Mac. The loan limit changes annually and is greater for high-cost areas (which applies to some areas in California).


Contact Us

119 East Main Street
Visalia, CA 93291

NMLS #1842388


Brendan John Farrell
NMLS #294123
Licensed in CA


© 2021 American Pacific Mortgage Corporation. For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity. NMLS# 1850
Licensed by the Dept. of Business Oversight under the CRMLA