Question 1

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

Accepted Answer

You need 620 minimum, but 740+ gets you the best rates. Most competitive Redwood City buyers have credit above 700.

Question 2

How much down payment is required for conventional loans?

Accepted Answer

First-time buyers can put down 3%. Most borrowers in San Mateo County put down 10-20% to avoid PMI or get better pricing.

Question 3

Can I cancel PMI on a conventional loan?

Accepted Answer

Yes, once you reach 20% equity through payments or appreciation. In Redwood City's market, equity builds faster than most areas.

Question 4

What's the difference between conventional and FHA loans?

Accepted Answer

Conventional loans drop PMI at 20% equity and cost less long-term for borrowers with good credit. FHA charges mortgage insurance for the loan's life.

Question 5

How do conventional loan limits work in San Mateo County?

Accepted Answer

Conforming limits reach $806,500 in San Mateo County as of 2026. Above that amount, you need a jumbo loan with different requirements.

Question 6

Do conventional loans work for self-employed borrowers?

Accepted Answer

Yes, with two years of tax returns showing stable income. We work with lenders who understand business deductions and calculate income correctly.

Conventional Loans in Redwood City: Competitive Rates for Strong Borrowers