What Is a Conventional Loan?
Plain-English answers from Andy & Rebekah at Entity Mortgage and Realty in Santa Clarita.
Get Pre-ApprovedCall or text 661-877-4162A conventional loan is a mortgage that is not insured or guaranteed by a government agency like FHA or the VA. Most conventional loans are “conforming,” meaning they follow the rules and loan limits set for Fannie Mae and Freddie Mac.
2026 conforming loan limits
- $832,750 for a one-unit home in most of the U.S.
- Up to $1,249,125 in high-cost areas, including Los Angeles County.
Loans above the limit for your county are called jumbo loans and have their own guidelines.
Down payment
Some conventional programs allow as little as 3% down for qualified buyers. Putting 20% down avoids private mortgage insurance (PMI).
How PMI works
If you put less than 20% down, you will usually pay PMI. Under federal law, you can ask to cancel PMI once your balance reaches 80% of the home’s original value, and it generally ends automatically at 78% if you are current on payments.
Who it fits
Conventional loans often work well for buyers with good credit and steady income, and they can be used for primary homes, second homes and investment properties.
Talk to Andy About Your Loan
Have questions or want to see what you qualify for? Call or text Andy at 661-877-4162.
What is a conventional loan: Frequently Asked Questions
When does PMI end on a conventional loan?
Under the Homeowners Protection Act you can ask to cancel PMI when your balance reaches 80% of the home's original value, and it generally ends automatically at 78% if you are current. Source: CFPB.
What is the 2026 conforming loan limit in LA County?
$1,249,125 for a one-unit home.
More Home Loan Guides for Santa Clarita Buyers
VA Loan Specialist · VA loans · FHA loans · Non-QM loans · Commercial loans
Andy Martinez Jr., Mortgage Loan Originator | NMLS #2171006 · Entity Mortgage and Realty, Company NMLS #2371431 · CA DRE #01978202 · 26254 Prima Way, Santa Clarita, CA 91350 · Equal Housing Opportunity. General information only, not a commitment to lend. Approval, rates and terms depend on credit, income, property and program guidelines and can change.