California Conventional Mortgage Programs
Conventional mortgage programs conform to Fannie Mae or Freddie Mac purchase guidelines. Program availability, loan amounts, rates, points, mortgage insurance, and underwriting guidelines are set by the funding lender and may change without notice. All loans are subject to credit, income, asset, property, and underwriting approval. Advanced Funding Solutions, NMLS #1277693.
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What Is a Conventional Mortgage?
A conventional mortgage is a home loan program that conforms to Fannie Mae or Freddie Mac purchase guidelines and is not backed by a government agency such as FHA, VA, or USDA. Advanced Funding Solutions is a mortgage brokerage that works with a network of wholesale lenders offering conventional programs across multiple investors.
Conforming vs. Non-Conforming Loan Amounts
Conventional loans are categorized by loan amount relative to the annual conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA) and varies by county. Loan amounts at or below the applicable county limit are eligible for conforming pricing. Loan amounts above the limit are classified as jumbo and are subject to a different set of program guidelines. Current county-by-county conforming limits are confirmed during the application process.
Down Payment and Mortgage Insurance
Most conventional programs allow a range of down payment options. Borrowers putting down less than 20% are generally required to carry private mortgage insurance (PMI) until equity reaches a level specified by program guidelines and applicable federal law. Specific PMI rates, removal procedures, and program eligibility (including reduced-down-payment programs such as HomeReady and Home Possible, which carry income-based eligibility requirements) are set by the funding lender and the agency.
Conventional loan rates, points, and closing costs are determined by the funding lender at the time of application based on credit profile, loan-to-value, occupancy, property type, loan amount, and program. Rates change without notice and are disclosed in writing during the formal application process as required by state and federal law. Any rate or cost figures discussed before a complete application are illustrative only and are not a quote, rate lock, or commitment to lend.
Common Uses for Conventional Programs
Conventional programs are available for primary residences, second homes, and 1–4 unit investment properties, subject to program guidelines. Down payment requirements, maximum LTV, mortgage insurance, and qualifying income calculations vary by occupancy type and are set by the funding lender. Investors whose personal DTI won't cover the payment sometimes cross-review a conforming conventional purchase against an investor DSCR program where the property's rental income drives qualifying. A conventional loan is also a common exit point for a rate-and-term refinance once a borrower's income, credit, and equity position support it. Eligibility for any specific program is determined during underwriting based on credit, income, asset, property, and program parameters.
Conventional financing conforms to Fannie Mae or Freddie Mac purchase guidelines and is often used by borrowers with documented income and credit. Specific qualifying calculations, loan limits, mortgage insurance, and pricing are set by the funding lender and the agency.
How Conventional Mortgage Programs Work With Advanced Funding Solutions
Reduced-down-payment programs (where eligible)
Fannie Mae HomeReady and Freddie Mac Home Possible are reduced-down-payment conventional programs subject to income-eligibility limits set by the agency. Specific income limits, down payment requirements, and pricing are set by the funding lender and the agency. Eligibility is determined during underwriting after credit and income review.
PMI per program guidelines
Private mortgage insurance is generally required on conventional loans with less than 20% down. PMI pricing and removal procedures are set by the funding lender and the agency, and are subject to federal law. Specific PMI amounts are confirmed in writing during the formal application process.
Fixed and ARM options
Most conventional programs offer fixed-rate and adjustable-rate (ARM) options. Available terms (30-year, 25-year, 20-year, 15-year, 10-year fixed; 5/6, 7/6, 10/6 ARMs) and pricing vary by funding lender and program.
Primary, second home & investment
Conventional programs may be available for primary residences, second homes, and 1–4 unit investment properties. Down payment, mortgage insurance, and pricing vary by occupancy and are set by the funding lender. Investment-property programs generally carry stricter requirements than owner-occupied programs.
Program-set pricing
Conventional rates and pricing are determined by the funding lender based on the agency's loan-level pricing adjustments and the lender's own pricing. Rates change daily and are confirmed in writing during the formal application process.
Multi-lender review
Advanced Funding Solutions works with a network of wholesale lenders offering conventional programs. We can review multiple conventional programs across funding lenders for a given borrower scenario, subject to each lender's underwriting guidelines.
Conventional Loan Terms at Advanced Funding Solutions
Who Conventional Mortgage Programs May Be a Fit For
Contact Advanced Funding Solutions to discuss whether this program may be a fit for your situation. Eligibility, loan amounts, and terms are determined after a complete application and underwriting review.
Get a Quote →- Borrowers with documented W-2 or self-employed income
- First-time and move-up homebuyers
- Borrowers with strong credit and verifiable income
- Buyers within agency loan-limit ranges
- Borrowers refinancing into a different rate or term
- Borrowers who may qualify for reduced-down-payment programs (income-eligibility-dependent)
How to Apply for a Conventional Mortgage
Discuss the scenario and pull credit
Advanced Funding Solutions will discuss the borrower's scenario and review credit, income documentation, and assets to identify conventional programs that may be a fit. Final qualifying calculations and program eligibility are determined by the funding lender during underwriting.
Document income and assets
Conventional programs generally require full income documentation. Specific documentation requirements (W-2s, tax returns, pay stubs for W-2 borrowers; personal and business tax returns for self-employed borrowers; asset statements) are set by each funding lender and agency program.
Order appraisal and title
Most conventional purchases require a property appraisal and title work. Closing timelines depend on the lender, appraisal, title, escrow, and how quickly the borrower provides documentation. Estimated timelines provided during the application process are not guaranteed.
Underwriting and closing
After a complete application, the funding lender performs underwriting and determines program eligibility, final loan amount, and terms. All loans are subject to credit, income, asset, property, and underwriting approval. Final loan terms are disclosed in writing during the formal application process.
Conventional Loans in California: Answered
How does Advanced Funding Solutions work with conventional mortgage borrowers?
How much does a conventional mortgage cost?
What is the minimum down payment on a conventional loan?
What credit score is required?
How does PMI work on a conventional loan?
What is the conforming loan limit?
Can a conventional loan be used for an investment property?
How long does a conventional loan take to close?
Related Loan Options
Program Disclosures
Advanced Funding Solutions is a mortgage brokerage (NMLS #1277693). Loan programs described on this page are offered through a network of wholesale lenders. Program availability, loan amounts, interest rates, points, fees, and underwriting guidelines are set by each funding lender and may change without notice. Not all borrowers will qualify for every program.
Any rates, costs, or timelines referenced on this page are illustrative only and are not a quote, rate lock, or commitment to lend. Actual rates and costs depend on the loan program, lender, credit profile, property type, occupancy, loan-to-value, and other factors, and are disclosed in writing during the formal application process as required by state and federal law.
All loans are subject to credit, income, asset, property, and underwriting approval. Pre-qualification is not a commitment to lend. State availability of specific programs varies — contact Advanced Funding Solutions to confirm whether a program is offered in your state. Equal Housing Opportunity.
Have a question about a conventional mortgage scenario?
Advanced Funding Solutions, NMLS #1277693. Contact us to discuss whether a conventional program may be appropriate for your scenario. All loans are subject to credit, income, asset, property, and underwriting approval.