Question 1

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

Accepted Answer

You need at least 620 to qualify. To get pricing that actually makes sense, aim for 740 or above.

Question 2

How much do I need to put down on a conventional loan?

Accepted Answer

As little as 3% if you're a first-time buyer with a strong profile. Put down 20% and PMI disappears entirely.

Question 3

Is PMI required on a conventional loan in Merced?

Accepted Answer

Only if you put down less than 20%. Once your loan balance drops to 80% of the home's value, you can request PMI removal.

Question 4

Are Merced home prices within conventional loan limits?

Accepted Answer

Yes. Most Merced purchases fall well under the conforming loan limit. A jumbo loan is rarely needed here.

Question 5

How does a conventional loan compare to FHA in Merced?

Accepted Answer

FHA costs more over time due to lifetime mortgage insurance. Conventional is usually cheaper once your score clears 680.

Question 6

Should I lock my rate now or wait?

Accepted Answer

Rates vary by borrower profile and market conditions. With 30-year rates recently at 6.57%, locking sooner limits your exposure to further moves.

Conventional Loans in Merced, CA