Question 1

What's the monthly payment on a $750,000 conventional loan at today's rate?

Accepted Answer

At 5.875% on a $750,000 loan, principal and interest run $4,437/month. That's before property taxes, insurance, and HOA fees. The scenario assumes a $937,500 purchase with 20% down, 740 FICO, 30-day lock.

Question 2

Do I need 20% down to avoid PMI?

Accepted Answer

Yes. At exactly 20% down (80% LTV), PMI disappears. Below 20%, PMI attaches and cancels only when you hit 78% LTV through payments or refinancing. At 20%, there's no insurance cost ever.

Question 3

Can I get a conventional loan with less than 5% down?

Accepted Answer

No. Conventional loans require a minimum 5% down payment. Below that, FHA's 3.5% down option is your only agency choice. Jumbo lenders typically want 20% down, so conventional at 5% is the lowest-down conventional path.

Question 4

How long does it take to close a conventional loan in Santa Maria?

Accepted Answer

Expect 21-30 days from application to funding. Appraisals run 7-10 days. Underwriting takes 5-7 days. Title work is fast. The bottleneck is usually employment verification and asset documentation, not the county.

Question 5

What credit score do I need for conventional?

Accepted Answer

740 FICO is the floor for this rate. Some lenders go as low as 620, but your rate climbs 0.5-1% for every 40-point drop. At 680 FICO, you're paying roughly 6.375% instead of 5.875%.

Conventional 30-Year Fixed Mortgages in Santa Maria, CA