California Conventional Loans
A California conventional loan is a type of financing loan that comes from a bank or other lending institution. They might also be referred to as “conventional mortgage loans” or “conventional financing”. Conventional mortgage in California is the most common form of home loan, and it offers a more set structure for borrowers.
Here are the basics of a conventional loan in California:
- Down payments: Conventional loans can be had with a down payment amount as low as 3% if you’re a first-time homebuyer.
- Credit rating: Homebuyers must have an acceptable credit score to be considered for this type of financing. Typically scores above 630 are considered to be “good,” and anything below that is “poor.” The lower your score is, the higher your interest rate will likely be. You must also have a debt-to-income ratio of less than 50%.
- Closing costs: Conventional loans usually require borrowers to pay fees when they close on a home, but these fees are typically less than those paid by FHA and VA buyers. Conventional loans do not require that the borrowers pay for inspections, appraisals or credit reports.
Is California Conventional Loan The Best Option For You?
California conventional loans are a great option for first-time owners, but even if this isn’t your first home purchase, the down payment amount only increases by two percent, to be 5%.
In some situations, homeowners in California can save money by using a conventional loan because they don’t have to pay as much for insurance, inspection or appraisal costs. In addition, lenders provide conventional loan approvals by looking at how much the homeowner is able to pay back over the term of the loan rather than on how much they plan to borrow.
If you’re wondering how a conventional loan compares to a VA loan, an FHA loan or other types of mortgage, we encourage you to reach out to us at LBC Mortgage and allow us to better assist you in finding the right type of loan for your needs. Because all of these loans have different requirements, we can take the time to understand your unique situation as well as answer any questions you may have about the different types of loans.
When Should You Apply For a Conventional Loan?
If you’re trying to save money or have issues with credit score, conventional loans can be a smart choice because they offer flexibility and low monthly payments. If saving money is important to you and you want to put as little money down as possible, California conventional loans may be the right type for you. Also, if you have good credit and want more loan options, conventional loans could be a better fit than FHA loan or stated income loan.
There are a lot of things to consider as you decide among the different types of loans to help you find one that’s the perfect fit for you financially. But you don’t have to do it all alone. At LBC Mortgage, we work with a variety of home loan funding options and can help you get approval when banks and other lenders turn you away.
What’s more, we’re extremely dedicated to helping you get the best deal. Rather than being treated like just a number, we want to get to know you and help you find the right financing for your needs. These are just a few of the many ways that we work hard to earn your business.
If you’re ready to learn more about how a conventional loan in California can help you, contact us today! We’ll take the time to answer all your questions as well as help you get the best deal on a conventional mortgage loan in California. We work with a large network of lenders and work hard to secure you the best possible rate.