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Conventional Loans​
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Financing Above Home's Value

Allows you to finance costs beyond the home’s value, such as furniture or landscaping

Lending Flexibility

Avoid paying upfront Mortgage Insurance 


Consistent Monthly Payments

Lock in your interest rate for the life of your loan

Conventional Loan Advantages
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Conventional loans in California are available through Summit Lending of LBC, a direct mortgage lender based in Long Beach, California. These loans are backed by Fannie Mae or Freddie Mac and are typically ideal for Californians seeking a fixed rate mortgage loan for 10-30 years. Benefits of conventional loans for those looking to buy a home or refinance a home in Southern California include low-interest rates and the security of knowing that your mortgage payment will remain consistent for a set number of years.


Conventional Mortgage Loans:


  • Account for the majority of home loans nationwide

  • Ensure consistent monthly mortgage payments

  • Available as fixed or adjustable interest rate


Summit Lending's team of experienced, top rated loan officers have an exceptional reputation for providing the best loan options to homebuyers and homeowners throughout California. 

What is a Conventional Loan?


A conventional loan is a type of mortgage loan in Southern California, that adheres to guidelines provided by Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac are known as Government Sponsored Entities (GSEs). They are sponsored by the Government, in the fact that they are agencies which have been instrumental in standardizing the mortgage lending process. Most home loans are conventional loans, accounting for more than half of all mortgage loans, according to the Census Bureau. Conventional loans are also called "conforming loans" in California. That's because they conform to the guidelines laid out by Fannie Mae and Freddie Mac. 

Conventional mortgage loan products in California offer benefits to borrowers including the option to choose a fixed rate mortgage or an adjustable rate mortgage. Conventional loans may be available as a fixed rate for a term of 10 years, 15 years, 20 years, 25 years, and 30 years. That means you can pay your home off as quickly as you are financially able, and/or want to pay it off. 

Conventional loans are also available as adjustable rate mortgages (ARMs). ARM loans appeal to home buyers in Southern California who don't plan to stay in their home for a long time. ARM loans are technically fixed rate loans in the beginning, with fixed rates available for 3 years, 5 years, or 7 years, before they adjust. ARM loans often come with lower interest rates, making your monthly payment much lower than on a 30-year fixed mortgage, for example. 

What Credit Score Do You Need to Get a Conventional Loan?


Conventional loans are suited for homeowners or home buyers in SoCal who have excellent credit, good credit, and in some cases, less than perfect credit. When you are applying for a mortgage loan through Summit Lending of Long Beach, our team of top-reviewed loan officers will provide you with various options for your mortgage loan. In some cases, you may qualify for one type of loan, but determine that based on your unique circumstances, you'd like a loan with different terms, such as a lower monthly payment. 

Is it better to get an FHA or Conventional Loan?


It is important to meet with a top-rated SoCal loan officer to discuss whether an FHA or conventional loan is best for you. There are unique benefits of each type of loan, but these benefits will be contingent upon your unique financial situation, your credit score, your down payment, your income and more. It's impossible to say which loan is best for you without looking at all of the numbers, and understanding what you want your payments to be, and what the interest rates are for each type of loan. 

FHA loans are the second most popular type of loans in the nation. Insured by the Federal Housing Administration, FHA loans are only available through FHA-approved lenders, such as Summit Lending of Long Beach, CA. FHA loans may have less stringent qualification requirements than a conventional loan and may require a lower down payment than a conventional loan. However, every borrower's situation is unique, so it's important to talk with an experienced mortgage broker, to make sure you thoroughly understand the best options for your needs. 

What is the Minimum Down Payment Required for a Conventional Loan?


There is a myth that conventional loans require the home buyer to put down 20%. This is not at all true. In fact, some conventional loans may only require 3% for your down payment. Talk with a top Southern California mortgage broker to learn more about the minimum down payment that will be required for a conventional loan. 

How Much Can I borrow for a Home Loan?


Conventional loans in Southern California have varying loan limits. In Los Angeles and Orange Counties, conventional loans currently have a limit of $625,500. To speak with one of Summit Lending’s Southern California mortgage loan officers about conventional loans available contact us today!


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