Conventional Home Loans in Redding, CA

Conventional Home Loans

What is a conventional home loan? Conventional home loans, which are not backed by the federal government, are loans that meet guidelines set forth by Fannie Mae or Freddie Mac, who provide a secondary market for mortgages. The underwriting guidelines are tighter than other types of mortgages, but the short and long term costs can be significantly lower to the borrower(s).

Conventional At A Glance

Minimum Down Payment:3.00%*
Terms (Years)30, 25, 20, 15 Fixed and Adjustable*
Gift Funds AllowedYes
Eligible HomesSingle & Multi-Family, Manufactured, Condo
Seller Paid Closing CostsUp to 3% of the Sales Price*
Loan Limits$417,000 Most US Counties | $625,500 AK & HI
MaxDTI43% (Higher DTI’s May Be Allowed Up To 45% max)*
Minimum Credit Score620 Mid-Score
AvailabilityAll US States, Owner Occupied, 2nd Home, Investment

*Other restrictions and guidelines apply. Please contact lender for full program details.

Is A Conventional Loan For Me?

If you have good credit, have not had any major derogatory credit events in the past 7 years, and can afford to put at least 3% down, a Conventional Loan may be the right choice.* Your monthly payment could be much more affordable compared to other programs such as FHA.

Types of Conventional Loans


Fixed-rate fully amortizing loans are the most popular type of mortgage loan, as they offer a monthly payment that does not change over time and result in a portion of the loan’s principal being paid down every month. Many borrowers find fixed-rate home loans to be an appropriate mortgage for their needs. Most fixed-rate mortgages are for loan terms of 15 or 30-years.* A 30-year amortizing loan typically has lower payments than a 15-year loan, but a slightly higher interest rate than a 15-year loan.*


An adjustable-rate mortgage has a short-term fixed-rate term during which an interest rate is fixed.* After this initial term, the interest rate on an adjustable-rate mortgage or “ARM” loan can change periodically at certain intervals.* This adjustment permits the lender to adjust the interest rate to match changing interest rate environments.* For example, a 3/1 ARM loan offers a fixed-rate for the first three years, adjusting once a year thereafter.* A 5/1 ARM loan offers a fixed-rate for the first five years, adjusting yearly thereafter.* At each adjustment, the lender sets the interest rate by adding a margin or spread to the then-current index rate.

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