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Summit Lending - Conventional Loans



Conventional Loans in Southern California

Conventional loans in Southern California are available through Summit Lending, a direct mortgage lender and top reviewed mortgage broker based in Orange County, California. Conventional loans are those which are not backed by the federal government (FHA loans) but are instead backed by Fannie Mae or Freddie Mac (known as Government Sponsored Entities or GSEs).

Conventional loans in Southern California are often best suited for homebuyers seeking a purchase loan with fixed rate mortgage loan for a period of 10-30 years. Conventional loans are also often a great option for homeowners in Southern California looking to refinance their current mortgage into a lower interest rate.

Conventional Mortgage Loans: Summit Lending's team of experienced, top rated and Yelp! reviewed mortgage brokers 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 in Huntington Beach, our team of top-reviewed mortgage brokers and mortgage professionals 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 mortgage broker 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 in Orange County, 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?

The conventional loan limits set forth by Freddie Mac and Fannie Mae, for conventional loans are specific to your geographic area. Current loan limits in Southern California for conventional loans are as follows.

Los Angeles County: $679,650.00
Orange County: $679.650.00
Riverside County: $453,100.00
San Bernardino County: $453,100.00
San Diego County: $649,750.00
Ventura County: $672,750.00


As a top-rated Orange County mortgage broker and direct lender, Summit Lending is headquartered in Huntington Beach, California. Summit Lending is a five-star rated mortgage company, with offices throughout Southern California. To learn more about conventional mortgages contact us online or call 888-451-9006.