Question 1

What is the conforming loan limit for Merced County?

Accepted Answer

Merced County uses the baseline conforming limit set by Fannie Mae and Freddie Mac. Most Los Banos purchases fall well below that ceiling.

Question 2

Do I need 20% down for a conforming loan in Los Banos?

Accepted Answer

No. You can put down as little as 3%. You'll pay PMI until you reach 20% equity, then it drops off.

Question 3

What credit score do I need for a conforming loan?

Accepted Answer

Lenders require at least 620. But 740+ gets you the best rate tiers and saves real money over the loan term.

Question 4

Can self-employed borrowers get conforming loans in Los Banos?

Accepted Answer

Yes. You'll need two years of tax returns and strong income documentation. DTI limits still apply.

Question 5

How does a conforming loan differ from a conventional loan?

Accepted Answer

All conforming loans are conventional, but not all conventional loans are conforming. Conforming means it meets Fannie Mae and Freddie Mac guidelines.

Question 6

Is a fixed or adjustable rate better for Los Banos buyers right now?

Accepted Answer

HousingWire shows ARM demand is shifting as rates move. A fixed conforming loan removes that rate risk entirely. Rates vary by borrower profile and market conditions.

Conforming Loans in Los Banos, CA