What is a conventional loan?

A conventional loan is a mortgage that is not insured by a government agency like FHA or VA. It is commonly used for primary residences, second homes, investment properties, purchases, and refinances.

How much down payment do I need for a conventional loan?

The down payment depends on occupancy, property type, credit, income, loan amount, and program guidelines. Some eligible primary-home buyers may have low down payment options, while second homes and investment properties usually require more.

Do conventional loans require mortgage insurance?

Mortgage insurance may be required when the down payment or equity is below program thresholds. The cost depends on credit, loan-to-value, loan type, and other factors.

Can a self-employed borrower get a conventional loan?

Yes, self-employed borrowers can qualify for conventional loans when income can be documented and calculated under conventional guidelines. If the tax-return income is not enough, bank statement or non-QM options may be worth reviewing.

Can I use a conventional loan for an investment property?

Possibly. Conventional investment property loans are available for eligible borrowers and properties, but down payment, reserve, rate, and guideline requirements are different from primary-home financing.

What is the difference between conventional and FHA?

Conventional loans are not government-insured. FHA loans are insured by the Federal Housing Administration and may be useful for certain borrowers with lower down payments or different credit profiles. The better option depends on the full file.

Conventional Loans in California

A conventional loan in California is a mortgage that is not insured by FHA, VA, or USDA and is commonly used for primary homes, second homes, and investment properties. LoansByJB helps California borrowers compare conventional loan options for purchases, refinances, low down payment scenarios, and higher-balance property markets.

Last updated: August 5, 2026

Who conventional loans may help

Conventional loans are often a strong fit for borrowers with steady income, solid credit, and enough down payment or equity to meet program guidelines. They can work for first-time buyers, move-up buyers, refinances, second homes, and some investment property purchases.

Common conventional loan uses

Primary home purchases
First-time buyer purchases
Rate-and-term refinances
Cash-out refinances
Second home financing
Investment property financing
Condo and townhome purchases when the project meets guidelines

What matters most

Conventional approval depends on the full file. Credit score, income, debt-to-income ratio, assets, reserves, property type, appraisal, occupancy, and loan amount all matter. In Southern California, the property price and loan limit can also change which structure makes sense.

The cleanest conventional file is not always the highest-income file. It is the file where income, assets, credit, and property guidelines all line up without surprises.

When another path may be better

A conventional loan may not be the right answer if tax returns do not show enough income, the property is investment-focused, the borrower needs short-term financing, or the purchase requires renovation money. In those cases, FHA, VA, bank statement, DSCR, jumbo, bridge, renovation, hard money, or private money options may be worth comparing.

Talk it through

If you want to compare conventional loan options in California, request a mortgage review with LoansByJB.

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Not a commitment to lend. All loan programs are subject to credit approval, income and asset verification, property review, and program guidelines. Rates, terms, and availability may change.