Conventional Loans in the Sacramento Region

A conventional loan is a mortgage that isn't part of a government program. It isn't insured by FHA or backed by VA or USDA. The Consumer Financial Protection Bureau (CFPB) says on its conventional loans page (last modified October 16, 2024) that most conventional loans are conforming. That means they follow the rules set by Fannie Mae and Freddie Mac and stay within a maximum loan amount.

Loans above that amount are nonconforming, often called jumbo loans. The CFPB notes their terms are less standardized and can vary widely by lender. That's one reason it helps to have a mortgage broker compare several.

Maggie B. Hopkins is a mortgage broker. She shops your conventional loan across a network of approved lenders so you see real options side by side. Give yourself options.

It depends on how the loan is underwritten. Fannie Mae's Selling Guide (section dated April 22, 2026) says a minimum credit score is not required for loans run through its automated system, Desktop Underwriter. The system weighs your whole credit picture instead. For loans underwritten by hand, the guide lists minimums of 620 for fixed-rate loans and 640 for adjustable-rate loans.

Debt-to-income, or DTI, compares your monthly debts with your monthly income. Fannie Mae's guide (section dated April 2, 2025) sets the maximum DTI at 50% for loans run through Desktop Underwriter. Manually underwritten loans start at 36% and can go to 45% with stronger credit and savings.

Those are Fannie Mae's outer limits. Each lender can set its own rules on top of them, which is why we compare lenders for your file.

The CFPB says (conventional loans page, last modified October 16, 2024) that a down payment under 20% typically means paying for mortgage insurance. On a conventional loan it's called private mortgage insurance, or PMI.

The good news is that PMI doesn't last forever. The CFPB's page on removing PMI (last reviewed August 28, 2026) explains the federal rules for a home you live in:

• You can ask to cancel it in writing once your balance is scheduled to reach 80% of the home's original value. You need a good payment history, no second loans on the home, and proof the value hasn't dropped.
• It ends automatically when your balance is scheduled to reach 78% of the original value, as long as you're current.
• It must end at the midpoint of the loan's schedule even if the balance isn't there yet, as long as you're current.

The CFPB adds that Fannie Mae and Freddie Mac can have their own cancellation rules, and those can't be less favorable to you. Your PMI disclosure shows the first date you can ask.

Here is the short version, based on the CFPB pages cited above:

• Conventional: typically costs less than FHA but can be harder to get. PMI can come off as you build equity.
• FHA: more flexible qualifying standards and down payments as low as 3.5%. Mortgage insurance is required on every FHA loan. See our FHA loan page.
• VA: for eligible veterans, service members and some surviving spouses. See our VA loan page.
• USDA: for low- to moderate-income buyers in eligible rural areas. See our USDA loan page.

The CFPB suggests trying more than one scenario when more than one loan type fits you. Then compare official Loan Estimates. That's the work we do with you. Our purchase loan page walks through the steps from offer to closing.