Expert Advice for Conventional
Loans in San Jose

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Owning a home is the American dream. But most of us require mortgage funding in order to make that dream come true. For many homeowners, this will come in the form of a conventional loan.

What is a Conventional Loan?

A conventional loan is a mortgage that complies with a set of eligibility requirements that are set by FNMA (Fannie Mae) and FHLMC (Freddie Mac). These mortgages are made by banks and other lending entities that underwrite their loans to the requirements of these agencies. Currently, conventional mortgages represent nearly two-thirds of mortgage loans issued in the United States.

Choosing a Lender

If you have a strong credit score, a solid income and at least 3 percent to put as a down payment, a conventional loan in San Jose has many options and may be the best fit for you. But how do you know which lender to choose?

If you are purchasing a home or considering refinancing the one you own, you owe it to yourself to get professional help when shopping for a mortgage. Because lenders are very different when it comes to San Jose conventional loan offerings, it helps to have a mortgage professional in your corner to help you get the most competitive mortgage for your needs.

The Advantage of an Independent Mortgage Broker

That is where we come in. At Alliance Lending, we are independent mortgage brokers and have partnerships with multiple different lending institutions. In this way, we can help you find the best rates and terms for your particular lending needs. Whether you are buying a home or looking to refinance, we can help you secure the best possible financing based on your individual financial profile and credit history.

What Criteria are Used for a Conventional Loan?

Qualifications and underwriting criteria can vary from lender to lender but there are standard parameters for most conventional financing:

Down Payment

Conventional mortgages historically required larger down payments than other types of mortgage financing but now they offer 3 percent down payment options for those applicants who can qualify.

Credit Score

Conventional loans will typically require credit scores of 620 to 640 depending on the lender.


Conventional loans may be used to finance either a primary residence or a second home. This is not available with an FHA or VA loan.

Property Types

Conventional financing is available for single-family homes, condominiums and townhomes as well as multi-family properties.

Income Requirements

Debt-to-income ratios cannot exceed 43 percent for a conventional mortgage. This will be verified by tax returns, W-2s and paycheck stubs.

Loan Limits

Conforming loan limits in Santa Clara County are $726,525 for a single-family home and $930.300 for a 2-family dwelling

Call an Expert

Because different San Jose conventional mortgage lenders offer different rates, terms and products, you want to make sure you are getting the best mortgage for your needs. You can rely on the expertise of Alliance Lending. We do the shopping for you. Because we work for YOU and not the lender, you are our first priority. Call us today at 408-226-4000 or click the buton below to discuss your mortgage needs.