Question 1

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

Accepted Answer

Most lenders require 620 minimum, though 740+ qualifies for best rates. Scores between 680-739 still access conventional financing with slightly higher pricing. Rates vary by borrower profile and market conditions.

Question 2

How much down payment is required for conventional loans?

Accepted Answer

First-time buyers can put down as little as 3%, while repeat buyers need 5% minimum. Putting down 20% eliminates private mortgage insurance and reduces your monthly payment significantly.

Question 3

Can I use a conventional loan for a San Pablo condo?

Accepted Answer

Yes, conventional loans finance condos if the complex meets lender requirements for reserves and owner-occupancy ratios. This works well for San Pablo's condo communities near transit corridors.

Question 4

How does conventional PMI compare to FHA mortgage insurance?

Accepted Answer

Conventional PMI costs less monthly and cancels automatically at 78% loan-to-value. FHA requires both upfront and monthly premiums, with monthly insurance lasting the loan's life on low down payments.

Question 5

What income documentation do conventional lenders require?

Accepted Answer

W-2 employees provide recent pay stubs and two years of tax returns. Self-employed borrowers need two years of business returns and profit-loss statements showing stable or growing income.

Conventional Loans in San Pablo: Flexible Financing for Contra Costa County Homebuyers