Conventional Loans in Orange County
The most popular mortgage option with competitive rates, flexible terms, and as little as 3% down payment. No government backing means more property types and loan amounts available for Orange County buyers.
3% Down Available
Low down payment options for qualified buyers
Competitive Rates
Often the lowest rates available in the market
Any Property Type
Primary, second homes, investment properties, condos
PMI Removable
Cancel PMI when you reach 20% equity
2025 Conventional Loan Limits in Orange County
Conforming Loan Limits
*2025 conforming loan limits set by FHFA. Above these amounts require jumbo financing.
Conventional Example
*Includes principal, interest, taxes, insurance, and PMI. Rates vary.
Why Choose Conventional Loans?
🏆 Best Rates Available
Conventional loans typically offer the lowest interest rates, especially for buyers with good credit scores (740+).
Often 0.125-0.25% lower than government loans
🛡️ PMI Can Be Removed
Unlike FHA loans, PMI automatically cancels at 78% LTV or you can request removal at 80% LTV through appreciation or payments.
Save hundreds monthly long-term
🏠 Any Property Type
Primary residences, second homes, investment properties, condos, co-ops, and manufactured homes on permanent foundations.
Maximum flexibility
💰 Higher Loan Amounts
Conforming loans up to $766,550 in Orange County, or go jumbo for unlimited amounts with competitive rates.
Perfect for Orange County prices
⚡ Faster Processing
No government approvals needed. Automated underwriting systems provide faster decisions and closings.
Often close in 2-3 weeks
📈 Cash-Out Friendly
Higher cash-out refinance limits (up to 80% LTV) and more flexible uses of proceeds than government programs.
Access more equity
Conventional Loan Down Payment Options
3% Down Program
5% Down Standard
20%+ No PMI
Conventional Loan Requirements
✅ Qualifying Standards
Credit Score: 620+ (740+ for best rates)
Higher scores unlock premium pricing
Debt-to-Income: Up to 45%
Higher ratios possible with compensating factors
Employment: 2+ years stable history
Same field/industry preferred
Cash Reserves: 2+ months recommended
More required for investment properties
Down Payment Source: Must be documented
Gift funds acceptable with proper documentation
📋 Additional Considerations
PMI Costs
0.25-1.5% annually depending on credit/LTV
Property Standards
Must meet lender appraisal requirements
Investment Property Rules
25% down minimum, higher rates and reserves
Second Home Requirements
10% minimum down, additional reserves needed
Occupancy Verification
Primary residence must be occupied within 60 days
Conventional vs Other Loan Types
| Feature | Conventional | FHA | VA | Jumbo |
|---|---|---|---|---|
| Down Payment | 3-20% | 3.5% | $0 | 10-20% |
| Interest Rates | Lowest* | Competitive | Competitive | Higher |
| Loan Limits (OC) | $1,089,300 | $766,550 | No limit | No limit |
| Mortgage Insurance | PMI - Removable | MIP - Long Term | None | None |
| Property Types | All Types | Limited | Primary Only | All Types |
| Credit Score | 620+ | 580+ | 580+ | 700+ |
*With good credit (740+). Rates vary by credit score, down payment, and market conditions.
Why Conventional Loans Work Great in Orange County
Perfect for OC Price Range
Conforming limits of $1,089,300 cover many Orange County homes, while jumbo options handle luxury properties seamlessly.
Investment Property Friendly
Orange County's strong rental market makes investment properties attractive. Conventional loans offer the best terms for investors.
Condo Approval Flexibility
Many Orange County condos may not be FHA-approved but qualify for conventional financing with more flexible requirements.
Orange County Conventional Lending
Popular OC Conventional Areas:
Ready for the Most Popular Loan Program?
Get pre-approved with competitive conventional loan rates and flexible terms
Licensed mortgage broker with NEXA Mortgage • NMLS #1426884 • Serving all of Orange County
Important Disclaimers
This is not a commitment to lend. All information contained herein is subject to change without notice. All loans are subject to credit approval, income verification, and property appraisal. Equal Housing Lender.
This material is not from HUD or FHA and has not been approved by HUD or any government agency. The information provided is for informational purposes only and is not an advertisement for products or services.
Interest rates and loan terms are subject to change without notice. All information must be verified prior to loan approval. Mo Abdel - NMLS #1426884, Licensed Mortgage Loan Originator with NEXA Mortgage.