Question 1

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

Accepted Answer

Lenders require a 620 minimum. You'll get the best rates at 740 or higher — and in Yorba Linda's price range, that difference adds up.

Question 2

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

Accepted Answer

As little as 3% if you're a first-time buyer. Put down 20% and you avoid PMI altogether.

Question 3

Will my Yorba Linda home price push me into a jumbo loan?

Accepted Answer

Possibly. Homes priced above the Orange County conforming limit require jumbo financing. We'll tell you exactly where you stand.

Question 4

How does PMI work on a conventional loan?

Accepted Answer

PMI is private mortgage insurance — it protects the lender when you put down less than 20%. It cancels automatically once you reach 20% equity.

Question 5

Is a conventional loan better than FHA in Yorba Linda?

Accepted Answer

For most buyers here with solid credit, yes. Conventional PMI cancels; FHA mortgage insurance typically doesn't without a refinance.

Question 6

Can I use gift funds for my down payment on a conventional loan?

Accepted Answer

Yes. Conventional loans allow gift funds from family members. Documentation is required — lenders will want a gift letter.

Conventional Loans in Yorba Linda, CA