Question 1

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

Accepted Answer

Minimum credit score is 620, but most Orinda borrowers benefit from scores above 680 for competitive rates. Higher scores unlock better pricing and easier approval.

Question 2

How much down payment do conventional loans require?

Accepted Answer

First-time buyers can put down as little as 3%, while other borrowers typically need 5-20%. Putting down 20% or more eliminates private mortgage insurance requirements.

Question 3

Can I use a conventional loan for an Orinda condo?

Accepted Answer

Yes, if the condo project has Fannie Mae or Freddie Mac approval. Always verify project approval status before making an offer on any condominium.

Question 4

How do conventional loans compare to FHA in Orinda?

Accepted Answer

Conventional loans cost less long-term for borrowers with good credit and sufficient down payment. FHA charges upfront and monthly mortgage insurance that conventional loans avoid with 20% down.

Question 5

What income documentation do Orinda lenders require?

Accepted Answer

Expect to provide recent pay stubs, two years of tax returns, and employment verification letters. Self-employed borrowers need two years of business tax returns showing consistent income patterns.

Conventional Loans in Orinda: Smart Financing for Contra Costa County Homebuyers