Question 1

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

Accepted Answer

Most lenders require a minimum 620 credit score. Scores above 740 qualify for the best rates and terms. Rates vary by borrower profile and market conditions.

Question 2

Can I buy a Daly City condo with a conventional loan?

Accepted Answer

Yes, conventional loans finance condos if the complex meets lender requirements. The HOA must maintain proper insurance and reserves. Your broker can verify condo eligibility.

Question 3

How much down payment do I need for a conventional loan?

Accepted Answer

First-time buyers can put down as little as 3%. Repeat buyers typically need 5% minimum. Putting down 20% eliminates private mortgage insurance requirements.

Question 4

What's the difference between conventional and FHA loans in San Mateo County?

Accepted Answer

Conventional loans require higher credit scores but offer lower insurance costs for qualified borrowers. FHA accepts lower scores but charges higher mortgage insurance that often lasts the loan's full term.

Question 5

Do conventional loans work for investment properties in Daly City?

Accepted Answer

Yes, conventional loans finance investment properties with higher down payments, typically 15-25%. Rates run slightly higher than owner-occupied financing, and qualification standards are stricter.

Conventional Loans in Daly City: Flexible Financing for San Mateo County Homebuyers