MENU
Conventional Loans
I'm Erik Kinsley, a California Mortgage Broker with access to hundreds of lenders and investors, including strong Conventional pricing for well-qualified buyers across Riverside and San Diego counties.
At a Glance
Down Payment: 3-20%
Credit: 620+
Best For: Flexible Credit
Who It's For
Conventional loans are the most flexible and widely-available mortgage option for most homebuyers.
Repeat Buyers
Homeowners looking to refinance their existing mortgage to take advantage of current market rates.
First-Time Buyers
First-time homebuyers with solid credit and a stable income history who want the most flexible loan type.
Buyers Avoiding PMI
Homebuyers who want to avoid the permanent mortgage insurance required by FHA loans.
How to Qualify
Understanding your mortgage eligibility is the first step toward homeownership. We provide a clear checklist of the key requirements you must meet to qualify for a conventional loan.
Credit Score
A minimum credit score of 620 is required for most conventional loans. Higher scores (740+) typically qualify you for the most competitive interest rates and terms.
Down Payment
Typical down payments range from 3% to 20%. While 3% is often the minimum for qualifying, a larger down payment can reduce your monthly payment and eliminate private mortgage insurance (PMI).
Debt-to-Income Ratio
Most lenders prefer a DTI ratio of 43-45%. This ensures you have sufficient income to cover your mortgage payments and other essential living expenses.
Income History
We require a stable 2-year income history to verify your ability to repay the loan. This typically includes recent pay stubs and tax returns.
Loan Limits
For 2026, the conforming loan limit is $832,750 in most areas. In high-cost areas, the limit can reach up to $1,249,125. Your home's value must be within these limits.
PMI Simplified
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender if you default on your loan. Once you reach 22% equity through amortization, PMI cancels automatically. You can also request its removal at 20% equity, which is typically a smart financial move to eliminate monthly costs.
Myth vs. Reality
Dispelling common misconceptions about down payments and mortgage insurance to help you make informed decisions.
Myth
You need 20% down to buy a home.
Reality
Many conventional buyers put down as little as 3-5%, and PMI comes off once you build equity.
Myth
Once you get PMI, you're stuck with it forever.
Reality
PMI cancels automatically once you reach 22% equity by amortization or can be requested at 20% equity.
Conventional FAQ
Common questions about PMI and credit scores for conventional loans.
Can I remove PMI later?
Yes, you can remove PMI once you reach 22% equity through amortization. You can also request its removal at 20% equity if you have a strong credit history and stable income.
What credit score do I need?
Most conventional loans require a minimum credit score of 620. For the best interest rates and terms, we recommend a score of 740 or higher to qualify for the lowest PMI costs.
Ready to Start Your Home Journey?
Take the first step toward your dream home. We are here to guide you through every phase of the mortgage process with expert knowledge and personalized service.