How Conventional Loans Work in California
A conventional loan in California helps many buyers afford homes in high price areas. Lenders set terms based on credit, income, and property value. Private banks and credit unions issue these mortgages. No government agency insures the loan. This difference affects down payment rules and insurance. What is a Conventional Mortgage? A conventional loan is a mortgage held by a private lender. Government programs such as FHA, VA, or USDA do not back the loan. Lenders use borrower credit, income history, assets, and debts to set approval and interest rates. Loan types include conforming loans and jumbo loans. Conforming loans meet Federal Housing Finance Agency limits. Jumbo loans exceed those limits. Key Numbers and Requirements for Conventional Loans in California 2026 conforming limit for many California counties sits at $832,750 for a single-family home. High-cost areas have a limit of $1,249,125. Down payments range from 3 percent to 20 percent based on loan program and borrower pro...