Conventional Loans in Fresno & the Central Valley
A conventional loan is a mortgage that is not backed by a government agency. It is the most common type of home loan and offers flexible terms for primary residences, second homes, and investment properties. Conventional loans follow conforming loan limits set by the Federal Housing Finance Agency (FHFA), with jumbo options available for higher-priced homes.
Who Conventional Loans May Be Right For
Borrowers with good to excellent credit (typically 620+), a steady income, and those who want to avoid the upfront mortgage insurance that comes with government-backed loans.
Advantages
- Down payments as low as 3% for qualified buyers
- No upfront mortgage insurance fee
- Private mortgage insurance (PMI) can be canceled once you reach 20% equity
- Available for primary residences, second homes, and investment properties
- Competitive interest rates for strong credit profiles
Things to Consider
- Stricter credit-score requirements than government-backed loans
- PMI required with less than 20% down (but cancelable, unlike FHA)
- Lower debt-to-income ratios are generally preferred
Credit Considerations
Most conventional loans require a minimum credit score of 620, though a higher score will help you qualify for the best interest rates and the lowest down payment options.
Down Payment Considerations
You can put down as little as 3% on a conventional loan if you qualify. Putting 20% or more down eliminates private mortgage insurance entirely.
How the Application Works
- 1
Get pre-qualified
Tell us about your goals and finances so we can estimate how much you may be able to borrow.
- 2
Submit documentation
Provide income, asset, and employment documents for verification.
- 3
Lock your rate
Once you're under contract on a home, we can lock in your interest rate.
- 4
Close on your loan
After underwriting and appraisal, you'll sign final documents and receive your keys.
Typical Documentation
- 30 days of recent pay stubs
- Two years of W-2s and federal tax returns
- Two months of recent bank statements
- Photo ID and Social Security number
- Authorization for a credit check
Conventional Loans Frequently Asked Questions
What is the minimum down payment for a conventional loan?
Qualified buyers can put down as little as 3% on a conventional loan. Putting down 20% or more lets you avoid private mortgage insurance entirely.
Can I cancel PMI on a conventional loan?
Yes. Once you reach 20% equity in your home, you can request to have private mortgage insurance removed — a key advantage over FHA loans, which carry mortgage insurance for most of the life of the loan.