Question 1

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

Accepted Answer

Minimum is 620, but you'll get better rates starting at 680. We see most approved borrowers in the 680-740 range for competitive pricing.

Question 2

How much down payment do I need?

Accepted Answer

First-time buyers can put down 3%. Repeat buyers typically need 5% for primary homes, 15% for second homes, and 20% for investment properties.

Question 3

Do conventional loans work for Norwalk condos?

Accepted Answer

Yes, but the HOA needs lender approval. Smaller complexes or high investor ratios require portfolio lenders who handle non-warrantable condos.

Question 4

How does conventional compare to FHA in Norwalk?

Accepted Answer

With 5%+ down and 680+ credit, conventional costs less monthly. FHA makes sense only with 3.5% down or credit below 640.

Question 5

Can I remove mortgage insurance on a conventional loan?

Accepted Answer

Yes, MI drops automatically at 78% LTV. You can request removal at 80% LTV with a new appraisal showing sufficient equity.

Question 6

How long does conventional loan approval take?

Accepted Answer

We typically close in 21-30 days. Faster than FHA or VA because there's no government review layer slowing the process.

Conventional Loans in Norwalk: Flexible Financing for LA County Homebuyers