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Los Angeles buyers are closing on homes at 6.25% on conventional 30-year fixed loans. At that rate, a $750,000 loan carries a $4,618 monthly payment for principal and interest alone.
The $937,500 purchase price reflects strong demand from buyers who can put 20% down. Conventional financing at 80% LTV means no PMI and no surprises over the life of the loan.
6.25%
Interest Rate
$4,618
Monthly Payment (P&I)
740+
FICO Required
5% to 20%
Down Payment Range
None
PMI at 20% Down
Conventional Loans in Los Angeles
You'll need a 740 FICO to qualify for conventional at the best rates in Los Angeles. Down payments range from 5% to 20%, though 20% down eliminates PMI and locks in the lowest pricing.
Los Angeles County's median household income of $87,760 supports purchases around $937,500 with conventional financing. Lenders typically cap your housing payment at 28% of gross income, so verify your income aligns with your target price.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Los Angeles.
Los Angeles buyers are closing on homes at 6.25% on conventional 30-year fixed loans. At that rate, a $750,000 loan carries a $4,618 monthly payment for principal and interest alone.
The $937,500 purchase price reflects strong demand from buyers who can put 20% down. Conventional financing at 80% LTV means no PMI and no surprises over the life of the loan.
You'll need a 740 FICO to qualify for conventional at the best rates in Los Angeles. Down payments range from 5% to 20%, though 20% down eliminates PMI and locks in the lowest pricing.
Conventional loans in California are backed by Fannie Mae or Freddie Mac, which means consistent underwriting across lenders. Most brokers and banks offer them, and the market is competitive for borrowers with solid credit and down payment.
Closing timelines run 30 to 45 days for conventional loans. Lenders pull your credit, verify income, and order an appraisal before final approval. The process is straightforward because agency guidelines are standardized nationwide.
Conventional financing makes sense in Los Angeles when you have 20% down and a solid credit score. At $937,500, the 80% LTV eliminates PMI entirely, saving thousands over the loan term compared to a 10% down scenario.
Below $937,500, conventional still works, but FHA's 3.5% down option becomes attractive if your savings are tight. Above the conforming limit of $1,249,125, jumbo loans apply and rates typically run 0.25% to 0.5% higher.
FHA loans run lower rates than conventional but carry mortgage insurance for the life of the loan if you put down less than 10%. Conventional at 20% down has no insurance at all, making the total cost competitive despite the higher rate.
VA loans offer zero down for eligible veterans, but the funding fee (2.15% for first-time use) rolls into the loan amount. Conventional requires a down payment, but buyers without VA eligibility have no alternative that matches the simplicity and cost.
Los Angeles has no recent major infrastructure or school announcements in the current data. Focus your decision on the neighborhood's walkability, commute time to your workplace, and proximity to amenities that matter to your family.
The city's size means neighborhoods vary dramatically in character and price. Verify property taxes, HOA fees if applicable, and local zoning before committing. These factors often matter more than the mortgage rate itself.
The principal and interest payment is $4,618 per month. Add property taxes, insurance, and HOA fees (if any) to get your total housing payment. That scenario assumes a 740 FICO, 80% LTV, 30-year fixed, and 0.395 discount points ($2,960 up front).
Yes — conventional loans accept 5% down, but PMI applies until you reach 80% LTV. At 20% down, PMI disappears entirely, making the total cost lower despite the higher rate versus FHA.
Yes. PMI cancels automatically at 78% LTV under the Homeowners Protection Act. You can also request cancellation at 80% LTV if you've paid on time. FHA mortgage insurance, by contrast, never cancels unless you refinance.
A 740 FICO qualifies you for the best rates shown here. Lenders may approve 680-720 FICO borrowers, but rates will be higher. Below 680, conventional becomes difficult; FHA is often the better path.
Conventional loans typically close in 30 to 45 days. The timeline depends on appraisal turnaround, income verification, and title work. Lenders with strong local presence often close faster.