Conventional Loans in San Diego: The Standard Mortgage, Planned Around Your Bigger Picture
A conventional loan is a mortgage that isn't insured or guaranteed by the federal government. Most conventional mortgages are conforming, meaning they follow Fannie Mae or Freddie Mac guidelines and stay within the annual conforming loan limit. For 2026, the national baseline for a single-family home is $832,750, with higher limits in areas like San Diego County. For qualified buyers with solid credit and documented income, conventional financing can be a cost-effective option. Mission Pacific Mortgage offers fixed-rate and adjustable-rate conventional loans and compares each against your long-term financial plan.
Why Choose Conventional Financing?
Some eligible primary-home buyers can put as little as 3% down.
Compare mortgage structures that fit your timeline.
Conventional loans do not require FHA's upfront mortgage insurance premium.
Financing for eligible primary residences, second homes, and rentals.
Single-family loan limit in most U.S. counties
Single-family high-balance conforming loan limit
Larger mortgages may require a jumbo loan program.
Is a Conventional Loan Right for You?
Conventional mortgages offer flexible financing for qualified homebuyers, homeowners, and investors.
Buyers With Established Credit
You have a solid credit profile and want to compare competitive conventional mortgage options. Eligibility depends on the lender and underwriting method.
Borrowers With Documented Income
You earn W-2 income or have self-employment income that can be documented through acceptable financial records.
First-Time Homebuyers
You're buying your first home and want to explore low down payment options.
Homeowners Refinancing
You want to change your loan terms, access home equity, or explore consolidating debt through a refinance.
Second-Home Buyers
You're purchasing an eligible vacation property or second residence.
Investment Property Buyers
You're purchasing or refinancing a qualifying rental property through conventional financing.
You May Not Need 20% Down
Some conventional loan programs allow qualified borrowers to purchase a primary residence with as little as 3% down.
If you put less than 20% down on a conventional mortgage, private mortgage insurance (PMI) usually applies.
For many conventional primary residence loans, you can request PMI cancellation when your loan balance reaches 80% of the home's original value, subject to eligibility requirements.
PMI generally ends automatically when the scheduled loan balance reaches 78% of the original property value, if the loan is current.
Unlike mortgage insurance on many FHA loans, conventional borrower-paid PMI can be canceled when applicable conditions are satisfied.
Low down payment options have eligibility rules. PMI cancellation requirements vary by loan type and may depend on payment history, original value, and loan servicing guidelines.
How Conventional Loans Work
We review your qualifications and compare your loan options before you commit.
Review Your Financial Profile
We review your income, assets, credit history, and property information to evaluate conforming loan eligibility.
Choose Your Loan Structure
Compare 30-year and 15-year fixed-rate mortgages, along with available adjustable-rate programs.
Review Down Payment & PMI
We compare down payment options, private mortgage insurance costs, and the effect on your monthly payment.
Model Your Long-Term Costs
Robert compares 15-year and 30-year terms, fixed and adjustable options, and potential effects on your finances over time.
What You'll Need to Get Started
Conventional mortgages generally use documented income, assets, and credit history for qualification.
Employment type, property use, and the loan program determine the exact documents required.
Documents to Prepare
- ✓ Recent pay stubs and W-2 forms, if employed
- ✓ Up to two years of tax returns, if self-employed and required
- ✓ Approximately two months of bank or investment account statements
- ✓ Credit information and authorization for review
- ✓ Purchase contract or current mortgage information for a refinance
15-Year vs. 30-Year Mortgage: A Different Financial Outcome
Explore a comparison of 15-year and 30-year mortgage terms, including approximately $353,000 in interest savings and a $2,160 monthly payment difference.
Read the Full Case Study →Figures are based on the supplied case study description. Actual interest savings and payments depend on the loan amount, rates, repayment schedule, and other assumptions.
Conventional Loan FAQs
Answers to common questions about conventional mortgages in San Diego and California.
What credit score do I need?
A score of 620 is still a common lender guideline, but requirements differ. Fannie Mae removed its universal 620 minimum for loans submitted through Desktop Underwriter in November 2025. Credit history, automated underwriting, and lender rules determine eligibility. Stronger credit scores generally improve loan pricing.
How much do I need for a down payment?
Some conventional programs allow as little as 3% down on qualifying primary residence purchases. Other properties or programs may require more. When your down payment is below 20%, private mortgage insurance is usually required.
Is a conventional loan better than FHA?
It depends on your credit, down payment, and loan costs. Conventional financing may cost less for borrowers with stronger credit, especially because it does not require an FHA upfront mortgage insurance premium and conventional PMI may be canceled. FHA may be more competitive for certain borrowers with lower credit scores or smaller down payments.
Can I use a conventional loan for a rental or second home?
Yes. Conventional loan programs may finance eligible second homes and investment properties. These transactions have different down payment, pricing, and reserve requirements from primary residence loans.
What if my loan amount is above the conforming limit?
San Diego County has a higher conforming loan limit than the national baseline. For 2026, qualifying single-family mortgages can be conforming up to $1,104,000 in San Diego County. Loans above the local limit may require jumbo financing.
Explore Your Conventional Mortgage Options
Whether you're buying your first home, moving, purchasing an investment property, or refinancing, Robert can help you compare conventional loan options based on your financial plans.
Discuss Your Loan Options →Important Disclosure: Conventional mortgage financing is subject to lender approval, credit, income, asset, property, and underwriting requirements. Down payment minimums, interest rates, private mortgage insurance, and available programs vary by borrower and loan purpose. Mortgage insurance is generally required on conventional loans with less than 20% down, although alternative structures may be available. PMI cancellation is subject to applicable requirements and servicing rules. Adjustable-rate mortgage payments may change after the initial fixed period. Loan comparisons and financial projections are illustrative and do not guarantee future results. Conforming loan limits vary by county, property unit count, and year.
