Question 1

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

Accepted Answer

Most lenders require at least 620, though better rates come with scores above 740. Some portfolio lenders may work with lower scores but expect higher rates and larger down payments.

Question 2

Can I avoid PMI with less than 20% down?

Accepted Answer

Yes, through piggyback financing or lender-paid mortgage insurance. A piggyback loan uses a second mortgage to reach 20% down. LPMI builds insurance costs into your rate, which may be tax-deductible.

Question 3

How does conventional financing work for condos in Grover Beach?

Accepted Answer

The condo complex must be approved by Fannie Mae or Freddie Mac. Your lender will review the HOA's financial health, owner-occupancy ratio, and legal standing before approval.

Question 4

What's the maximum loan amount for conventional loans here?

Accepted Answer

Conforming loan limits apply, which are set annually by the Federal Housing Finance Agency. Loans above this become jumbo loans with different requirements and rates.

Question 5

Do conventional loans work for investment properties in Grover Beach?

Accepted Answer

Yes, but expect higher down payments (typically 15-25%) and slightly higher rates. Lenders view rentals as higher risk than primary residences, so qualification standards are stricter.

Conventional Loans in Grover Beach: Finance Your Central Coast Home with Flexible Terms