Conventional Loans

• Fixed Rate Loans
• Adjustable Rate Loans (ARMs)
• Combination (Hybrid) Loans
• Balloon Mortgages and Pledge Asset Loans
• Jumbo / Construction Loans
• Reverse Mortgage

Understanding Conventional Loans in Santa Clarita

A conventional loan is a type of home mortgage that isn’t backed by a government agency. These loans are ideal for borrowers with stable employment, good credit, and the ability to make a down payment. If you’re considering buying a home in the Santa Clarita Valley, here’s what you need to know about conventional loans.

Qualification Requirements

To qualify for a conventional loan in Santa Clarita, you’ll need to meet these basic requirements:

• A credit score of at least 620 (higher scores qualify for better interest rates)

• A down payment ranging from 3-20% of the purchase price

• Debt-to-income ratio of 43% or less

• Stable employment history of at least two years

• Verifiable income through W-2s, tax returns, and pay stubs

Loan Limits

For 2024, the conventional loan limit in Santa Clarita (Los Angeles County) is $766,550 for a single-family home. This means you can borrow up to this amount through a conventional loan to purchase your home in the Santa Clarita Valley.

Employment and Income Requirements Lenders will verify your ability to repay the loan by reviewing:

• Your employment history (typically looking for 2+ years of stable employment)

• Regular, verifiable income

• W-2s and recent pay stubs

• Tax returns (especially important for self-employed borrowers)

Eligible Properties

Conventional loans can be used to purchase:

• Single-family homes

• Condominiums

• Multi-unit properties (up to 4 units)

• Primary residences, second homes, or investment properties

Whether you’re looking to buy in Valencia, Stevenson Ranch, Newhall, or anywhere else in the Santa Clarita Valley, a conventional loan might be the right choice for your home purchase. The key is having strong credit, stable employment, and the required down payment to qualify.

[Note: This content provides a clear overview of conventional loans while staying specific to the Santa Clarita market, avoiding comparisons with other loan types, and maintaining a focus on essential information for potential borrowers.]

Here at Southern Oaks Mortgage, Inc., we cover the entire State of California, including some of the areas where we have specifically done loans in:  Valencia, Newhall, Saugus, Canyon Country, Castaic, Val Verde, Santa Clarita, Stevenson Ranch, Acton, Aqua Dulce, Lancaster, Palmdale, Los Angeles, Griffith Park, San Fernando Valley, Northridge, Chatsworth, Granada Hills, Encino, Tarzana, Woodland Hills, North Hills, West Hills, Canoga Park, Winnetka, Van Nuys, North Hollywood, Studio City, Beverly Hills, Pacific Palisades, Toluca Lake, Panorama City, San Jose, San Francisco, Fresno, Sacramento, San Diego, Long Beach, Oakland, Santa Ana, Anaheim, Westlake Village, Thousand Oaks, Simi Valley, Long Canyon, Moorpark, Conejo Valley, Agoura Hills, Calabasas, Bakersfield, Riverside, Stockton, Chula Vista, Irvine, Glendale, San Bernardino, Burbank, Huntington Beach, Oxnard, Oceanside, Garden Grove, Mission Viejo, Ontario, Pomona, Santa Rosa, Salinas, Pasadena, Corona, Torrance, Escondido, Orange, Fullerton, El Monte, Hollywood, West Hollywood, Palos Verde, Palos Verde Pennisula, Inglewood, Santa Clara, Costa Mesa, Downey, West Covina, Victorville, Norwalk, Carlsbad, Laguna Niguel, Laguna Hills, Newport Beach, Newport Dunes, Temecula, Murrieta, Compton, Westminster, Whittier, Santa Barbara, Santa Monica, Hawthorne, Alhambra, Buena Park, Lakewood, Indio, Vernon, Merced, Napa.