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Arroyo Grande sits in San Luis Obispo County, where home prices push many buyers toward conforming loan limits. Knowing exactly where that ceiling lands changes what you can buy.
Conforming loans follow Fannie Mae and Freddie Mac guidelines. That means standardized underwriting, competitive rates, and a deep pool of lenders competing for your business.
620
Min Credit Score
3%
Min Down Payment
45–50%
Max DTI (typical)
21–30 days
Avg Close Time
80% LTV
PMI Cancels At
Conforming Loans in Arroyo Grande
Most lenders want a 620 credit score minimum for conforming loans. Score above 740 and you get the best pricing tiers.
Debt-to-income ratio — your monthly debts divided by gross income — should stay under 45%. Some automated approvals allow up to 50% with strong compensating factors.
Local decision guide
Use this guide to connect conforming loans eligibility, lender expectations, and local market factors before comparing payment options in Arroyo Grande.
Arroyo Grande sits in San Luis Obispo County, where home prices push many buyers toward conforming loan limits. Knowing exactly where that ceiling lands changes what you can buy.
Conforming loans follow Fannie Mae and Freddie Mac guidelines. That means standardized underwriting, competitive rates, and a deep pool of lenders competing for your business.
Most lenders want a 620 credit score minimum for conforming loans. Score above 740 and you get the best pricing tiers.
Conforming loans are the most widely offered product in the country. Every bank, credit union, and broker has access to them.
Access isn't the issue — pricing is. We shop 200+ wholesale lenders to find who's actually competitive on rate and fees for your specific profile.
The biggest mistake I see on conforming loans is borrowers going straight to their bank. Retail banks price for margin. Wholesale lenders price to win.
Lender overlays are real. One lender caps DTI at 43% even though Fannie allows 50%. Shopping the loan means finding who actually wants your deal — not just who approves it on paper.
Conforming loans beat FHA on cost once your credit score hits 700+. FHA charges mortgage insurance for the life of the loan. Conforming PMI drops off at 80% equity.
If your loan amount exceeds the conforming limit, you're in jumbo territory. Jumbo loans carry stricter income and reserve requirements. Stay under the limit if you can.
Arroyo Grande is a desirable Central Coast market. Properties here move quickly, and clean conforming loans close faster than FHA — that matters in competitive offer situations.
San Luis Obispo County qualifies for higher conforming limits as a high-cost area. That gives Arroyo Grande buyers more room before needing a jumbo loan.
SLO County qualifies as a high-cost area, so limits exceed the national baseline. Check current FHFA limits before assuming your loan amount conforms.
Yes. Fannie Mae's HomeReady and Freddie Mac's Home Possible both allow 3% down. PMI applies until you reach 20% equity.
PMI — private mortgage insurance — is required below 20% down. Unlike FHA, it cancels automatically once you hit 80% loan-to-value.
Usually yes, if your score is above 700. Conforming rates run lower and PMI cancels. FHA MIP often stays for the loan's life.
Expect two years of tax returns, 30 days of pay stubs, and two months of bank statements. Self-employed borrowers add business returns.
Well-prepared conforming files close in 21-30 days. That's faster than FHA and helps in competitive offer situations.