Question 1

What is the conforming loan limit in Merced County?

Accepted Answer

Merced County uses the standard conforming limit set by the FHFA. Most Merced home purchases fall comfortably within that ceiling.

Question 2

Can I put less than 20% down on a conforming loan?

Accepted Answer

Yes. You can put as little as 3% down. PMI applies until you reach 20% equity, then it cancels.

Question 3

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 loans meet Fannie Mae and Freddie Mac size and guideline rules.

Question 4

Is a conforming loan better than FHA for Merced buyers?

Accepted Answer

For buyers with 680+ credit and 5% down, conforming usually wins on total cost. FHA costs more over time due to permanent mortgage insurance.

Question 5

What credit score do I need for a conforming loan?

Accepted Answer

Most lenders require 620 minimum. Scores above 740 get you the sharpest rates and lowest PMI costs.

Question 6

Can self-employed buyers use conforming loans in Merced?

Accepted Answer

Yes, but lenders use your tax return net income — not gross revenue. Two years of returns are required.

Conforming Loans in Merced, CA — Straightforward Financing for Real Buyers