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Conventional Loans

Conventional loans are mortgages that meet the underwriting requirements of Fannie Mae or Freddie Mac.  Conventional loans are not insured by government agencies (unlike FHA and VA loans which are backed by government –operated insurance pools.)

Conventional financing includes fixed rate mortgages, adjustable rate mortgages, as well as products such as Home Ready and Home Possible. Conventional loans are available with as little as 3% down payment for loans up to the conforming loan limit of $424,100 for a one unit property.

It’s important to note that Fannie Mae designates High-Cost areas of the country and allows for expanded loan limits in some areas. Santa Cruz, Santa Clara and Monterey Counties all have expanded loan limits. We call these conforming loans “High Balance.” These loans may be subject to stricter underwriting guidelines to be purchased by Fannie Mae and Freddie Mac.

Check out the chart below to see the limits for Santa Cruz, Santa Clara and Monterey.  Click here for a list of all counties in California. (Opens in Microsoft Excel)

# of Units                                                                Conforming Loan Limit

     1                                                                                     $424,100

     2                                                                                     $543,000

     3                                                                                     $656,350

     4                                                                                     $815,650

 # of Units                               High Balance Loan Limit for  Santa Cruz & Santa Clara Counties

     1                                                                                       $636,150

     2                                                                                       $814, 500

     3                                                                                       $984,525

     4                                                                                       $1,223,475

# of Units                                         High Balance Loan Limit for Monterey County

     1                                                                                      $575,000

     2                                                                                      $736,100

     3                                                                                      $889,800

     4                                                                                      $1,105,800

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