Conventional Home Loans in Redding, CA

US Lending is your source for Conventional Home Loans

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 for the borrower(s).

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

Is A Conventional Loan Right 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.

Conventional Loans At A Glance

  • Minimum Down Payment: 3%*

  • Terms (Years): 30, 25, 20, 15 Fixed and Adjustable*

  • Gift Funds Allowed: Yes
  • Eligible Homes: Single & Multi-Family, Manufactured, Condo

  • Seller Paid Closing Costs: Up to 3% of the Sales Price*

  • Loan Limits: These vary by county and typically adjust each year.*

  • MaxDTI: 43% (Higher DTI’s May Be Allowed Up To 45% max)*

  • Minimum Credit Score: 620 Mid FICO

  • Availability: All US States, Owner Occupied, 2nd Home, Investment

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

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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