Question 1

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

Accepted Answer

You need 620 minimum credit, but 740+ gets best rates. The spread between 620 and 760 credit costs about 1.5% in rate on typical LA loan amounts.

Question 2

How much down payment is required for conventional financing?

Accepted Answer

Primary homes qualify with 3% down if you're a first-time buyer, 5% otherwise. Investment properties require 15-25% down depending on loan size.

Question 3

What's the conforming loan limit in Los Angeles County?

Accepted Answer

The 2024 conforming limit is $806,500 for single-family homes. Loans above this amount are jumbo loans with different pricing and requirements.

Question 4

Can self-employed borrowers get conventional loans?

Accepted Answer

Yes, with two years of tax returns showing stable or increasing income. Lenders average your net income after deductions, so write-offs reduce buying power.

Question 5

How does PMI work on conventional loans?

Accepted Answer

You pay monthly PMI with less than 20% down, typically $50-200 per month. It drops automatically when you hit 78% loan-to-value through payments or appreciation.

Question 6

Which LA properties don't qualify for conventional financing?

Accepted Answer

Condos with under 50% owner occupancy, buildings with major deferred maintenance, and properties with ongoing litigation typically don't qualify. Order HOA docs early.

Conventional Loans in Los Angeles: Finance Your Home with Competitive Rates