Agency pricing for documented income.
Conventional loans follow Fannie Mae and Freddie Mac guidelines and carry the sharpest pricing for strong credit and documented income. In Los Angeles and Orange County, high-balance limits mean many homes that would be jumbo elsewhere still qualify as agency loans here.
- Backed by
- Fannie Mae and Freddie Mac guidelines
- Terms
- Fixed-rate and adjustable-rate options
- Loan amounts
- Up to the county conforming or high-balance limit
- Occupancy
- Primary residence, second home or investment
How it works
A conventional mortgage is any home loan not insured by the federal government. Most are conforming loans, meaning they follow the guidelines of Fannie Mae and Freddie Mac and fall under the loan limit set for the county. Because those loans are sold into a deep, liquid market, they carry some of the best pricing available for borrowers with solid credit and documented income.
Los Angeles and Orange County are high-cost areas, so the conforming limit here runs well above the national baseline. Troy sizes the loan against the current county limit first, because an agency loan that fits under it is usually priced better than a jumbo loan for the same amount.
Conventional loans come with fixed-rate terms for people who want a payment that never changes and adjustable-rate terms for people who plan to move or refinance within a known window. Mortgage insurance applies when the down payment is under 20 percent and can be removed later as equity grows.
- Buyers and owners with good credit and two years of documented income
- Buyers putting less than 20 percent down who want mortgage insurance that can later be cancelled
- Owners refinancing out of FHA to drop the monthly insurance premium
- Investors and second-home buyers using agency programs
- Borrowers between the conforming baseline and the county high-balance limit
Not sure you fit? Ask. Troy tells people on the first call when a different program serves them better.
What to consider
Program details vary by investor and change over time. These are the questions that decide whether the loan is right for you; Troy confirms the specifics for your file.
Conforming and high-balance limits
Limits are set each year by county. Where your loan amount lands decides agency versus jumbo pricing, and Troy checks it first.
Credit-based pricing
Agency pricing adjusts with credit score, down payment, property type and occupancy. Troy explains each adjustment that applies to your file.
Mortgage insurance
Under 20 percent down, private mortgage insurance is required. It is priced by credit and down payment and can be removed once equity reaches the program threshold.
Fixed or adjustable
A fixed rate buys certainty. An adjustable rate can start lower and suits a borrower with a clear exit before the first adjustment.
The process
From the first conversation to funding, you deal with Troy.
Size the loan
Troy checks the amount against the conforming and high-balance limits for the property's county.
Price it
You see the rate and APR for the term you want, with each pricing adjustment explained.
Underwrite
Full review by Troy, appraisal, conditions cleared personally.
Fund
Signing is scheduled around you. Troy coordinates escrow so the loan funds on the date you planned.
Questions people ask
General answers. The answer for your file comes from a conversation with Troy, not from a web page.
What is the difference between conforming and high-balance?
Both are agency loans. Conforming is up to the national baseline limit; high-balance runs from there to the higher limit set for high-cost counties like Los Angeles and Orange. High-balance pricing is usually close to conforming and better than jumbo.
Can I avoid mortgage insurance with less than 20 percent down?
Sometimes, with lender-paid mortgage insurance built into the rate or with a second mortgage covering part of the down payment. Troy compares the total cost of each.
Do conventional loans work for investment property?
Yes. Agency programs allow investment property with a larger down payment and pricing adjustments. For investors who prefer to qualify on the rent, a DSCR loan is the alternative.
How long does a conventional loan take to close?
Typically a few weeks from an accepted offer, depending on the appraisal and how quickly documents come in. Troy sets the timeline on the first call.
Related programs
Often considered alongside this one. Troy prices the alternatives so you can see them side by side.
Home purchase
Conventional, FHA, VA, jumbo and down-payment assistance, with a pre-approval that has been underwritten before the letter goes out.
Jumbo
Loan amounts above the county conforming limit for higher-value homes, with underwriting that reads the whole financial picture.
Refinance
Lower the payment, shorten the term or take cash out, with the before-and-after on the table before you decide.
FHA loans
Lower down payments and flexible credit guidelines for purchases and refinances, insured by the Federal Housing Administration.
Talk it through with Troy.
No obligation and no credit pull on the first call. Tell him what you’re trying to do and he’ll tell you whether conventional financing is the right tool, and what it would cost.