Question 1

What credit score do I need for a conventional loan in Clayton?

Accepted Answer

Minimum is 620, but you'll pay higher rates below 680. Clayton's competitive market rewards 740+ scores with the best pricing and lowest monthly costs.

Question 2

How much down payment is required in Clayton?

Accepted Answer

First-time buyers can put down 3%, repeat buyers need 5% minimum. Anything under 20% requires private mortgage insurance until you hit 78% loan-to-value.

Question 3

Do Clayton's fire zones affect conventional loan approval?

Accepted Answer

Approval stays the same, but some lenders adjust rates in high-risk areas. Bigger impact is securing fire insurance, which is mandatory and sometimes hard to find.

Question 4

Can I use a conventional loan for a Clayton investment property?

Accepted Answer

Yes, conventional loans work for second homes and rentals. Expect 15-25% down and stricter income verification compared to primary residence purchases.

Question 5

How does conventional compare to jumbo for expensive Clayton homes?

Accepted Answer

Conventional goes up to conforming limits with easier approval. Above that, jumbo loans require larger reserves and lower debt ratios but can still offer competitive rates.

Conventional Loans in Clayton, CA — Strong Credit Gets You the Best Rates