Conventional Loans · My Mortgage Company
Conventional Loans in Bakersfield, CA
Flexible financing for buyers with solid credit. Start with as little as 3% down, remove PMI when you reach 80% LTV, and finance primary homes, second homes, or investment properties.
Benefits
Why Choose a Conventional Loan?
Competitive Rates
Strong credit borrowers (720+) often get the best rates in the market — frequently better than FHA, even with PMI factored in.
PMI is Removable
Unlike FHA MIP, conventional PMI automatically cancels at 78% LTV (Homeowners Protection Act) or can be removed at 80% LTV upon request.
Multiple Property Types
Primary residences, second homes, and investment properties all qualify — unlike FHA and VA, which require primary occupancy.
Higher Loan Limits
Conforming loans up to $766,550 in most California counties. Jumbo conventional loans available above that threshold.
Eligibility
Conventional Loan Requirements
Conventional loans offer more flexibility on property type than government programs, but require stronger credit profiles.
- Minimum 620 credit score (740+ for best rates)
- Down payment: 3% (first-time buyers), 5% (repeat buyers), 10–20% for investment/second homes
- Debt-to-income ratio (DTI): typically 45% max (up to 50% with strong compensating factors)
- PMI required when down payment is less than 20%
- Conforming loan limit: $766,550 (most CA counties, 2024)
- Primary residence, second home, or investment property
- 2-year employment history and stable income documentation
Common Questions
Conventional Loan FAQ
What is the difference between conforming and non-conforming conventional loans?
Conforming loans meet the guidelines set by Fannie Mae and Freddie Mac — including loan limits ($766,550 in most CA counties for 2024). These are the most common and typically offer the best rates. Non-conforming (jumbo) conventional loans exceed these limits and carry slightly different requirements.
When can I remove PMI from a conventional loan?
You can request PMI removal when your loan balance reaches 80% of the original appraised value. Under the Homeowners Protection Act, lenders are required to automatically cancel PMI when your balance reaches 78% of the original value. A new appraisal showing increased home value can also support an early cancellation request.
Can I buy an investment property with a conventional loan?
Yes. Conventional loans are the primary financing option for non-owner-occupied investment properties (1–4 units). Expect a 15–25% down payment requirement, higher rates than primary residence loans, and a 6-month reserve requirement.
Is a conventional loan better than FHA?
It depends on your credit score, down payment, and how long you plan to stay. With 720+ credit and 20% down, conventional is almost always better — no PMI, no MIP. With lower credit or a small down payment, FHA may have a lower monthly payment despite the MIP. We will run both scenarios for you.
Ready for a Conventional Loan?
Get pre-approved and see if conventional or FHA is the better fit for your situation.
My Mortgage Company, Inc. · CA DRE #02168831 · NMLS #2269164 · Broker: Omar L. Ortiz, NMLS #951384, DRE #02056548. Loans subject to credit approval. Not all applicants qualify. All figures, rates, fee ranges, and examples shown on this page are for informational purposes only and are not a guarantee of rates, fees, loan terms, or qualification. This is not a commitment to lend.