Question 1

What credit score do I need for a conventional loan in Scotts Valley?

Accepted Answer

Minimum is 620. You want 740 or higher to access the best rate tiers and avoid heavy pricing adjustments.

Question 2

Do I need 20% down to get a conventional loan?

Accepted Answer

No. You can put as little as 3% down. Under 20% means PMI, but it cancels once you reach 20% equity.

Question 3

How does Santa Cruz County's high-cost status affect my loan?

Accepted Answer

Higher conforming limits mean you can borrow more without going jumbo. That keeps rates lower on larger purchase prices.

Question 4

Is conventional better than FHA in this market?

Accepted Answer

For buyers with 620+ credit and 5% or more down, conventional usually wins. FHA's lifetime mortgage insurance adds long-term cost.

Question 5

Can I get a conventional loan if I'm self-employed?

Accepted Answer

Yes, but expect to provide two years of tax returns. Lenders use your net income after deductions — that's what gets factored into your DTI.

Question 6

What's the difference between conforming and conventional?

Accepted Answer

Conventional means no government backing. Conforming means the loan meets Fannie Mae/Freddie Mac size limits. Most conventional loans are also conforming.

Conventional Loans in Scotts Valley, CA