Question 1

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

Accepted Answer

Most lenders require 620 minimum. To get competitive pricing in Orange County, aim for 740 or above.

Question 2

Can I avoid PMI on a conventional loan here?

Accepted Answer

Yes. Put 20% down and PMI never applies. You can also request removal once you hit 80% loan-to-value.

Question 3

Do conforming loan limits cover most RSM home prices?

Accepted Answer

Many properties in RSM fall within conforming limits. Homes priced above those limits require a jumbo loan instead.

Question 4

How do HOA fees affect my conventional loan approval?

Accepted Answer

Lenders add HOA dues to your monthly debt load. High HOA fees shrink the loan amount you can qualify for.

Question 5

Is a conventional loan better than FHA in Rancho Santa Margarita?

Accepted Answer

For buyers with strong credit and 5%+ down, conventional usually wins. FHA costs more over time due to permanent mortgage insurance.

Conventional Loans in Rancho Santa Margarita, CA