Question 1

What credit score do I need for conventional loans in San Carlos?

Accepted Answer

Minimum is 620, but expect to need 700+ to get approved at competitive rates in this market. Scores above 740 unlock the lowest pricing tiers across all lenders.

Question 2

How much down payment is required for conventional financing?

Accepted Answer

First-time buyers can put down 3%, repeat buyers need 5% minimum. You'll pay PMI below 20% down, but it cancels automatically once you hit 78% loan-to-value through payments or appreciation.

Question 3

Do most San Carlos homes require jumbo loans?

Accepted Answer

Yes, because most properties exceed the $806,500 conforming limit for 2026. Jumbo conventional loans follow similar guidelines but price slightly higher above that threshold.

Question 4

Can I remove PMI without refinancing?

Accepted Answer

Conventional PMI drops off automatically at 78% LTV or by request at 80%. FHA mortgage insurance never cancels without a refinance, making conventional the better long-term choice for most buyers.

Question 5

How do interest rates compare to FHA in San Carlos?

Accepted Answer

Conventional rates run 6.01% or lower for strong credit as of February 2026. FHA advertises similar rates but the mandatory insurance costs more over time. Rates vary by borrower profile and market conditions.

Question 6

What property types qualify for conventional loans here?

Accepted Answer

Single-family homes, condos, townhomes, and 2-4 unit properties all qualify. Condos need Fannie or Freddie approval, which most established San Carlos complexes already have.

Conventional Loans in San Carlos: Access Better Rates with Strong Credit