Conventional Loans

What is a Conventional Loan?

Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate.

While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options. A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate.

Conforming vs. Non-Conforming Loans

The first big difference between a conforming and a nonconforming loan is the loan’s limits. … Jumbo loans have higher loan limits, and slightly different guidelines because the mortgage can’t be sold to Fannie Mae, Freddie Mac, FHA and VA and pushes into nonconforming territory.

Benefits of Conventional Loans

Conventional loans are intended for borrowers with better income and credit scores, and have good rates and flexibility. Most home buyers choose conventional mortgages because they offer the best interest rates and loan terms—usually resulting in a lower monthly payment. And since most people choose a fixed-rate loan over an adjustable-rate mortgage, they don’t have to worry about rising mortgage rates, which makes it easier to budget.

Conventional Loan Limits

Different counties have different limits on how much you can borrow for a Conventional Loan. For more information about your county loan limits please call John today.

County 1 Unit 2 Unit 3 Unit 4 Unit
LOS ANGELES $679,650 $870,225 $1,051,875 $1,307,175
SANTA CLARA $679,650 $870,225 $1,051,875 $1,307,175
SAN DIEGO $649,750 $831,800 $1,005,450 $1,249,550


If you are looking to purchase a home or refinance in Glendale, Burbank, La Canada, Pasadena, Los Angeles, San Fernando Valley, and surrounding areas in California, contact John Piliposyan with Provident Lending Group at (818) 482-4747 for more information, or simply fill out the form on this page.