Question 1

What are the current conforming loan limits in El Cerrito?

Accepted Answer

Conforming loan limits vary by county and are updated annually. Contact a mortgage broker to verify current limits for Contra Costa County properties, as they differ from lower-cost areas.

Question 2

Can I use a conforming loan for a multi-unit property in El Cerrito?

Accepted Answer

Yes, conforming loans cover 2-4 unit properties with higher loan limits than single-family homes. You must occupy one unit as your primary residence to qualify for owner-occupied financing.

Question 3

How does my credit score affect my conforming loan rate?

Accepted Answer

Credit scores above 740 receive the best rates, while scores between 620-679 face pricing adjustments. Each 20-point increment can impact your rate by 0.25-0.5%, affecting monthly payments significantly.

Question 4

What's the difference between conforming and conventional loans?

Accepted Answer

All conforming loans are conventional, but not all conventional loans are conforming. Conforming loans meet Fannie Mae and Freddie Mac limits, while conventional includes both conforming and jumbo mortgages.

Question 5

Can I avoid mortgage insurance on a conforming loan?

Accepted Answer

Yes, putting down 20% or more eliminates private mortgage insurance. Borrowers with less than 20% down pay PMI until reaching 20% equity through payments or appreciation.

Conforming Loans in El Cerrito: Access Competitive Rates with Standard Financing