Conventional loan snapshot for California
| Item | Estimate |
|---|---|
| Minimum down payment | 3% |
| Minimum credit score | 620 |
| Typical CA home value | $695,400 |
| 3.5% down on typical home | $24,339 |
| 20% down on typical home | $139,080 |
| Avg. effective property tax | 0.71%/yr (~$410/mo) |
| Income for typical home (31% rule) | $214,000 |
Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.
Which California programs pair with Conventional loans?
- MyHome Assistance: A deferred-payment junior loan that can cover part of the down payment or closing costs for first-time buyers.
- Dream For All Shared Appreciation: When funded, provides a large down payment loan repaid with a share of future appreciation; rounds open periodically.
- CalPLUS: A first mortgage with a slightly higher rate paired with closing cost assistance.
Details and current limits: California Housing Finance Agency (CalHFA).
How does a conventional loan work?
Conventional loans are made by private lenders and usually sold to Fannie Mae or Freddie Mac. Because they follow those agencies' guidelines, they're called conforming loans. You can choose a fixed rate (15, 20 or 30 years) or an adjustable rate.
Your rate and mortgage insurance cost depend heavily on your credit score and down payment, so improving either before you apply can noticeably lower your payment.
Who qualifies for a conventional loan?
- Credit score: generally 620 minimum.
- Debt-to-income (DTI): up to 45%, and sometimes 50% with strong compensating factors.
- Down payment: 3% (HomeReady, Home Possible, 97% LTV programs) to 5%+.
- Steady, documented income — usually two years of history.
- Property: primary homes, second homes and investment properties are all allowed (with higher down payments for non-primary homes).
Conventional loans in California cities
Frequently asked questions
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Get My MatchesFigures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.