What is Conventional Financing

Industry Standard Loan: Flexibility on Rate, Term, and Property Type

The conventional, or conforming, loan is the industry standard mortgage. It is offered with a variety of terms (fixed, adjustable), and can be used for the primary residences, investment properties, and second homes.

Benefits You’ll Love About Conventional Financing

Enjoy down payments as low as 3.5% of the home’s purchase price

Qualify with no maximum income limitation

Qualify for an FHA home loan even without a long credit history

No prepayment penalty

Types of Conventional Loans

Below, you will find expandable sections that give you information on different types of Conventional Loans. If you are ready to apply for a loan, click here and it will take you to our secure online application. If you still have questions, our loan officers are just a phone call away (805.543.LOAN)

30-Year Fixed Mortgage

The most popular loan program in the United States. The loan term of 30 years helps keep the monthly payments manageable, but also means that borrowers will pay more interest over the life of the loan.

  • Down payment: as low as 3%
  • Credit score: as low as 620
  • Debt-to-income ratio: as high as 50%
  • Gift payments: allowed; entire down payment can be gift; family restrictions apply (Read more)
  • Rate and Term: fixed and adjustable rate options
  • Ceiling: $424,000 ($586,500 for high balance in SLO County; $625,500 for high balance in SB County)
  • Occupancy: primary, secondary, and investment eligible
  • Mortgage Insurance: no (with 20% down payment); yes (under 20%); lender-paid MI options available (Read more)

30-Year High Balance

The 30-year high balance loan offers San Luis Obispo County buyers access to conventional financing. Halfway through 2014, the median home price for SLO County rose above $480,000. The national conventional limit is $417,000. By offering a “high balance” loan of $561,200 in higher-cost areas, buyers retain access to the most popular loan program on the books.

GSFA Platinum Down Payment Assistance Program

The GSFA Platinum down payment assistance program was created to help low to moderate income homebuyers in the state of California purchase a home by providing down payment and/or closing cost assistance in the form of a non-repayable grant. (Read more)


The Program Income Limit for Freddie Mac first mortgages

program limits freddie mac - Copy

One-Time-Close Construction Loans

Loan Requirements

  • Credit: Minimum 700 FICO (limits to LTV/CLTV may apply)
  • Loan Term: Fixed Rate Mortgage (FRM): 10 – 30 year terms
  • Max LTV: 70% loan-to-value maximum
  • Occupancy: 1 Unit Owner Occupied, 1 Unit Second Home
  • Property Eligibility:
    • Single-family-detached, Modular (off-frame only), and Manufactured. No Co-ops.
    • Manufactured homes: Property may not have been currently installed prior to subject lot.
  • Additional Information:
    • No self builds
    • All contracts must be fixed price
    • Payments during construction will be based on the outstanding drawn balance and will be drawn from interest reserve if applicable, otherwise payment will be due. (Read More)

Purchase After Negative Credit

Wait times after foreclosure, short sale, bankruptcy (Read more)

  • Foreclosure: 7 years from completion date
  • Short Sale: 4 years from sale
  • Bankruptcy (Chapter 7): 4 years from discharge date
  • Bankruptcy (Chapter 13): 2 years from discharge date; 4 years from dismissal date
  • Deed-in-Lieu: 4 years from recorded date

* Reduced time frames with extenuating circumstances

15-Year Fixed Mortgage

The 15-year fixed offers a lower mortgage rate than the 30-year, and is very popular for refinance. The shorter loan term will save borrowers thousands and thousands off interest payments over the life of the loan.

Renovation Loan (Purchase or Refinance)

The HomeStyle Mortgage allows homeowners to include financing for a whole swath of home improvement(s) in with their mortgage, including kitchen upgrades, bedroom and bathroom additions, structural repairs, energy efficiency changes, and cosmetic alterations… (Read More)

MyCommunityMortgage Program

Middle-to-low income homebuyers who currently do not own a home are eligible to receive a significant price break on their loan under the newest program offered by Central Coast Lending, Fannie Mae’s MyCommunityMortgage (MCM) program… (Read more)

Notes & Special Offers

Qualify by showing just one year of income. (Read more)
~ Don’t wait a day longer than you have to! This program is perfect for buyers who are self-employed, or who have had a recent increase of income.

Financing for non-permitted additions is allowed.
~ Case-by-case basis. Give us a call at 805.543.LOAN to learn more.

Further Reading (From FAQ Page)

Further Reading (from the FAQ Page)

  • Low down payment loan programs (Read more)
  • Gift giving guidelines (Read more)
  • Mortgage insurance guidelines (Read more)
  • Credit qualification standards: FICO and Debt-to-Income (Read more)

Step 1. Get Pre-Approved.

How Does Pre-Approval Work?

Getting pre-approved is as easy as 1-2-3!

1. Create an Account

Creating an account is fast, easy, secure and FREE! Your account enables you to easily modify your loan application and view the status of your loan anytime day or night.

2. Submit Information

When you register for a Loan Center account, you can submit a loan application online and the sensitive information that you provide will be transmitted securely.

3. Get Pre-Approved

Kick your feet up while we crunch the numbers. Pre-approval can be done very quickly if you provide a complete and accurate loan application and supporting documentation.

You have questions? We have answers.
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