Conventional Loans

Conventional Loans


What Is A Conventional Loan?

A conventional, or conforming, mortgage is one that is not insured or guaranteed by any government entity such as FHA, VA, and USDA. They are also known as conforming loans because they have to adhere to the standards/guidelines set forth by Fannie Mae and Freddie Mac. These can be either fixed or adjustable mortgages. Long Beach Home Loan is proud to offer competitive conventional rates with various down payment options to all of our clients.


What Can I Use A Conventional Loan For?

Conventional loans are great for first time home buyers because there are various down payment options. Most people think you need 20% down to qualify for a conventional loan, however their or down payment programs as low as 3%. Once you own 20% equity or more in your home you qualify to remove mortgage insurance from your loan. Use a Long Beach Home Loan conventional loan to purchase a new property or refinance an existing loan!


Is A Conventional Loan Right For Me?

A conventional loan may be right for you if you have 20% of the down payment amount, or you currently have an FHA loan and are looking to purchase another property. If other markets are providing better returns of your investment than the interest being paid on the mortgage, than you may look into using a smaller down payment amount so a large sum of your money is not tied up in the house. If you are looking to take cash out and consolidate debt, or make home repairs, Long Beach Home Loan is proud to offer flexible financing options on conventional loans.


Conventional Loan Requirements

  • Income Requirements: A backend debt ratio of no more than 43% is generally required.
  • Down Payment: A minimum down payment of 3% to 5% of the sales price is required
  • Credit Score: The minimum credit required to obtain a Long Beach Home Loan conventional loan is a middle score of 620 (special circumstances may allow for lower scores).
  • Property Requirements: All properties using a conventional loan must adhere to the standards set forth by Fannie Mae and Freddie Mac. These requirements are generally more lenient than other products like FHA and VA.


Private Mortgage Insurance (PMI)

Private mortgage insurance (PMI) is used on conventional loans in which the buyer puts a down payment of less than 20%. PMI is in place to protect the lender from losing money if the borrower ends up in foreclosure.


Working With A Qualified Lender

At Long Beach Home Loan we are committed to serving clients throughout the state of California with all of their home needs. If you are thinking about purchasing your first home or refinancing your existing conventional loan, we can help! Contact me, Jack Skovgard (562-340-9453), for any questions you may have about conventional loans to see if one might be right for you.


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Jack Skovgard
Long Beach Home Loan
Mortgage Loan Originator
NMLS: 1448432
CalBRE: 01994726

Equal Housing Lender

Contact Us

Jack Skovgard of Long Beach Home Loan
1650 Ximeno Ave
Suite 210
Long Beach, CA 90804

 8:00 am - 6:00 pm
(After 6:00 pm by Appt)
Sat/Sun: By Appointment