What is a Conventional Loan?
A conventional loan is a mortgage that is NOT backed by any Government agency such as the Federal Housing Administration (FHA) or Veterans Administration (VA).
Conventional loans can be used to finance a primary residence, a second home, vacation property, or a rental property. This is an advantage over FHA and VA loans as those government programs can only be used to finance a primary residence.
As of 2019, in Rocklin, CA you can borrow up to 97% of the value of the home with certain Conventional loan programs. Typically you need a credit score of 620 and above to qualify. Some additional benefits include higher loan limits and no Mortgage Insurance (MI) with 80% loan-to-value (LTV) ratio.
Every borrower’s situation is different and unique so the best option is always speak to a professional to find out what your options are.