Question 1

What's the monthly payment on a $750K conventional loan in Arroyo Grande?

Accepted Answer

At 5.875% on a $750,000 loan, principal and interest run $4,437 monthly. Add property taxes, insurance, and HOA if applicable. This assumes 20% down, 740 FICO, 30-day lock, priced April 8, 2026.

Question 2

Do I need 20% down to avoid PMI?

Accepted Answer

Yes. 20% down means 80% LTV, which has zero PMI. Below 20% down, PMI kicks in and stays until you hit 78% LTV. At 10% down, expect $200–250 monthly for insurance.

Question 3

What credit score do I need for conventional?

Accepted Answer

Minimum 620 FICO, but 740+ gets the best rates and terms. Below 680, expect rate penalties and tighter overlays. Most lenders in California want 680+ for smooth approval.

Question 4

How long does it take to close a conventional loan?

Accepted Answer

Brokers typically close in 45–60 days. Retail banks run 60–75 days. A 30-day rate lock is standard. Appraisal and underwriting are the longest steps.

Question 5

Can I put 5% down on a conventional loan?

Accepted Answer

Yes, conventional allows 3–5% down. You'll pay PMI, which adds $200–400 monthly depending on the loan amount and FICO. Run the numbers against FHA before deciding.

Conventional 30-Year Fixed Mortgages in Arroyo Grande