Question 1

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

Accepted Answer

Minimum is 620, but you'll pay heavily for anything under 680. Above 740, you get the sharpest pricing and avoid lender overlays that reject borderline files.

Question 2

How much down payment is required for Cerritos properties?

Accepted Answer

First-time buyers qualify with 3% down, repeat buyers need 5% minimum. Putting down 20% eliminates PMI and strengthens offers against competing buyers.

Question 3

Do Cerritos HOA fees affect my loan approval?

Accepted Answer

Yes—lenders count full HOA dues in your debt ratio. A $400 monthly fee reduces your maximum loan amount by approximately $75,000.

Question 4

Can I avoid PMI without 20% down on a conventional loan?

Accepted Answer

Not without paying higher rates through lender-paid MI. Some portfolio lenders offer 80-10-10 piggyback structures, but these rarely beat standard PMI math.

Question 5

How do conventional rates compare to FHA in Cerritos?

Accepted Answer

Conventional beats FHA above 680 credit. Below that, FHA's flat pricing structure often costs less monthly despite the permanent mortgage insurance.

Conventional Loans in Cerritos: Strong Credit Gets You the Best Rates