Current conventional guidelines, updated from one source.
One guideline source feeds every number here, and the page updates when the source does. These are purchase and refinance parameters; the leverage table underneath covers occupancy by occupancy, and the status lines cover insurance, gifts, and the first-time-buyer programs.
First-time buyer; 5% standard; 97% loan-to-value at the top
First-time buyers (no ownership interest in a home in the past three years) can put 3% down on a one-unit principal residence with a fixed rate, at 97% LTV. Others start at 5% down. HomeReady and Home Possible give lower-income buyers the same 97%.
Priced on the score; no agency minimum with an automated approval
A 620 decision score opens the program on the wholesale side; the agencies set no minimum for an automated approval and 620 to 640 for manual underwriting by loan type. The strongest effect of the score is on cost, through loan-level adjustments and the mortgage insurance premium.
Required above 80% LTV; removed at 80% by request, 78% automatically
Private mortgage insurance applies above 80% loan-to-value. Fannie Mae’s 2022 figures put the annual cost in a range of 0.58%–1.86%, depending on the score and the leverage. It ends by request at 80% of the original value, automatically at 78%, and no later than the midpoint of the term.
With an automated approval; 36% to 45% on a manual file
Lenders compare total debt against gross income, with limits up to 50% on an automated approval and 36% to 45% on a manual file. The housing payment counted includes the mortgage insurance while it applies, which is why cancellation changes the ratio as well as the payment.
| Purpose | Occupancy and program | Maximum LTV |
|---|---|---|
| Purchase | One-unit principal residence, first-time buyer (fixed rate) | 97% |
| Purchase | One-unit principal residence, standard | 95% |
| Purchase | HomeReady / Home Possible (income limits apply) | 97% |
| Purchase | Two- to four-unit principal residence | 95% |
| Purchase | Second home | 90% |
| Purchase | Investment property, one unit | 85% |
| Purchase | Investment property, two to four units | 75% |
| Refinance | Limited cash-out (rate-and-term), one-unit principal residence | 95% |
| Refinance | Cash-out, one-unit principal residence | 80% |
| Refinance | Cash-out, two to four units, second home or investment | 75% |
| Combined LTV | Maximum contribution |
|---|---|
| above 90 percent | 3% of the sales price |
| 75.01 to 90 percent | 6% of the sales price |
| 75 percent or less | 9% of the sales price |
| investment property (any) | 2% of the sales price |
| Event | Waiting period |
|---|---|
| Chapter 7 or 11 bankruptcy | four years from discharge or dismissal (two years with documented extenuating circumstances) |
| Chapter 13 bankruptcy | two years from discharge; four years from dismissal (two with extenuating circumstances) |
| Multiple bankruptcy filings | five years when more than one filing within the past seven years |
| Foreclosure | seven years (three with extenuating circumstances, then limited to a principal residence or second home at 90 percent LTV, purchase or limited cash-out) |
| Deed-in-lieu, short sale or mortgage charge-off | four years (two with extenuating circumstances) |
Mortgage insurance: Fannie Mae reports that private mortgage insurance typically ranged from 0.58%–1.86% of the loan amount a year; the premium on a specific loan is priced by the insurer on the score, the leverage, and the coverage, and is never quoted here. Gifts from relatives may fund the entire down payment on a one-unit principal residence. HomeReady and Home Possible lend to 97% with income at or below 80% of the area median; HomeOne lends to the same leverage with a first-time buyer and no income limit.
Current conventional snapshot · updated October 3, 2026 · principal residences occupied within sixty days, second homes, and one- to four-unit investment properties · conforming limits apply by county and are confirmed by a Lendmire loan officer · above the limit, see the jumbo program · no prepayment penalty · Lendmire is a broker, never the lender.
This page describes program parameters, not an offer. The down payment minimums, the credit floor, the insurance thresholds, and the ratios are agency guidelines and lender overlays, subject to change without notice and to full underwriting; the appraisal, the credit report, the property, the occupancy, and the conforming limit decide every file. Lendmire is a broker, not a lender. Licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
Nearly every Simi Valley conventional file is read by an automated underwriting system against the agencies’ guides, and the few written by hand follow the manual columns of the same rules. The system does not change the rules below; it applies them: the leverage the occupancy allows, how the score is read, when mortgage insurance attaches and ends, and what the ratios and reserves must show.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in California; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
The down payment a Simi Valley buyer needs depends on three things: whether the home is a principal residence, a second home, or a rental; whether it is one unit or several; and whether the buyer counts as a first-time buyer. The snapshot table gives the answer for every combination the program allows.
Credit scores and automated underwriting
Conventional credit is priced more than it is gated. The floor in the snapshot is the lowest score the lanes accept, and above the floor the score sets the loan-level price adjustments and the mortgage insurance premium. A Simi Valley buyer with a stronger score pays less on both lines.
Mortgage insurance that cancels
Twenty percent down means no mortgage insurance at all, and anything less means insurance for a while. The calculator on this page shows the Simi Valley payment with the estimated premium and the payment after it ends, along with the month on the amortization schedule when the request and automatic thresholds arrive.
Ratios, reserves, and the DU finding
Reserves are measured in months of the total housing payment and set by the finding, the occupancy, and the number of financed properties; a Simi Valley second-home or investment file carries more than a principal residence. Income needs a two-year history and a reasonable expectation of continuing.
The calculator runs this on a Simi Valley scenario and adds the piece most calculators skip: the month on the amortization schedule when the balance reaches the request and automatic-termination thresholds, so the payment after the insurance ends is visible beside the payment before.
Where Simi Valley buyers borrow — and how a conforming loan fits.
Three Census figures frame a Simi Valley conventional file. Ownership says how much of the market the program reaches, the median value says what a low-down-payment loan typically comes to, and household income says what ratio that payment produces.
Citywide figures provide general market context, not an appraisal or an income calculation. Read the figures as ranges, not predictions. The lender appraises one home, documents one income, and lets the automated system read one credit file.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Simi Valley neighborhoods, distinct conventional files.
No single conventional file describes Simi Valley. The submarkets below differ in housing stock, price, occupancy mix, and the appraisal questions they raise, and each one shapes how a conforming loan is put together.
Investor and second-home purchases
Simi Valley rentals and pied-à-terre purchases run on conventional loans because FHA and VA finance principal residences only. Conventional terms include investment and second-home leverage in the snapshot, reserves for each financed property, and adjustments for the occupancy. Simi Valley is home to about 126K people.
Established close-in neighborhoods
Renovated and unrenovated homes sit side by side in Simi Valley’s established neighborhoods, and the appraisal values each on comparable sales. The leverage, the insurance, and the ratio do not change with the age of the house. On a one-unit principal residence at Simi Valley’s median value, the first-time buyer’s minimum down payment comes to about $24,700 and the standard minimum to about $41,200 — before closing costs, and before the mortgage insurance that comes with either; a second home, a multi-unit home, or a rental starts higher, as the leverage table shows.
Two-to-four-unit homes
Owner occupancy of one unit sets the leverage on a Simi Valley multi-unit conventional loan; without it, the property is an investment purchase at the lower investment leverage. The appraisal reads every unit and the rents. Roughly 32,423 Simi Valley households own their homes on the latest Census estimate — 73% of all households, the pool a conventional purchase joins.
Condominiums and townhomes
A Simi Valley condominium in an established project is a conventional file with the project review added. Established projects usually pass; new or investor-heavy ones draw questions, and a project that fails goes to a portfolio lender on different terms. Median household income in Simi Valley sits near $122,081 on the latest Census estimate.
Newer infill and recent construction
On recent construction in Simi Valley the appraisal is usually uneventful and the arithmetic decides: whether the loan fits under the conforming limit, and whether the ratio carries the price once the insurance is added at the leverage chosen. The median owner-occupied home value in Simi Valley runs near $823,800 on the latest Census estimate.
Higher-value homes
The higher-value Simi Valley file is a limit question, not an eligibility question. The conforming limit caps the loan amount, and the buyer either adds down payment to fit under it or chooses the jumbo route for the whole purchase. About 27% of Simi Valley’s households rent — roughly 12,034 renter households on the latest Census estimate.
Across all of Simi Valley, five questions settle a conventional loan: what the appraisal supports, whether the property passes the agencies’ review, how the home will be occupied, what the score costs, and what the ratio and reserves allow.
Four ways Simi Valley buyers put a conforming loan to work.
Because the agencies buy loans on principal residences, second homes, and investment property alike, the conventional loan is a program a Simi Valley household can use for every home it owns. Four examples follow.
Buy a condominium in a warrantable project
A Simi Valley condominium is a conventional purchase when the project passes the agencies’ review: owner-occupancy mix, budget and reserves, litigation, commercial space, and ownership concentration. The dues enter the ratio, and the leverage follows the occupancy as it would on a house.
Buy a second home
A second home in Simi Valley is a conventional file with its own leverage and reserve rules: more down than a principal residence, the payment on the existing home counted in the ratio, and a property the owner occupies part of the year rather than rents full time.
Refinance or take cash out
Refinancing on a conventional loan follows the same leverage table as buying: rate-and-term to the higher limit, cash-out to the lower one. A Simi Valley owner who has carried mortgage insurance may also use the refinance to leave it behind once the new loan sits at or below the threshold.
Buy a first home at the first-time-buyer minimum
A Simi Valley buyer who has not owned a home in three years qualifies for the program’s smallest down payment on a one-unit principal residence with a fixed rate; the down payment can be a gift from a relative, the seller can pay closing costs within the cap, and the insurance cancels as equity grows.
Estimate the payment on a Simi Valley price before requesting a quote.
Before you ask for a quote, size the payment yourself: the Simi Valley price, the down payment, the term, the benchmark rate, the insurance estimate, and the escrows go in, and the thresholds and the ratio ceiling come from the same guideline source as the block above. The result is an estimate, the rate is a published market average, and the insurance figure is an editable estimate inside Fannie Mae’s published range.
Simi Valley conventional payment estimate
The defaults are a Simi Valley starting point, not your purchase: put in the real price, the real down payment, and the real escrows.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a conventional loan quote.
Estimate seeded at the low end of Fannie Mae’s published range (0.58%–1.86% a year); the insurer prices the actual premium on the score and the leverage. Applies only above 80% loan-to-value.
Illustrative starting assumptions: a $750,000 price near Simi Valley’s median owner-occupied home value, the first-time buyer’s minimum down payment, a thirty-year term at the current Freddie Mac benchmark, mortgage insurance at the low end of Fannie Mae’s published range, property taxes and insurance estimated for California (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a conventional loan quote; your rate is set by the lender at lock. The mortgage insurance figure is an editable estimate seeded from Fannie Mae’s published typical range, not a premium quote; the insurer prices the actual premium, and the cancellation month assumes scheduled payments with no extra principal and no change in value. Taxes, insurance and dues are editable estimates; closing costs are not included. Conforming loan limits apply by county. Licensed in sixteen states for consumer mortgages.
Same buyer, three very different closings.
Most buyers can close the same purchase three ways, and the structures differ more than the labels suggest: conventional with insurance that cancels, FHA with a small investment and premiums for the life of the loan at full leverage, or VA with nothing down and no insurance for the eligible veteran.
Conventional, FHA, or VA.
Conventional fits the Simi Valley buyer with a solid score: the premium is smaller than FHA’s for strong credit and it ends, the monthly structure carries no upfront premium, and twenty percent down removes insurance altogether. A modest score or a thin file is where FHA competes.
FHA asks for a small minimum investment that a gift can cover, accepts a forgiving decision score, and charges an upfront premium plus an annual premium that lasts for the term at full leverage. For a Simi Valley buyer with a modest score it usually wins; for a strong score the conventional premium is smaller and temporary. See Lendmire’s FHA loan program.
VA beats conventional on the principal residence for nearly every eligible borrower; conventional beats VA on everything VA does not touch: second homes, rentals, and buyers without the certificate. The two often sit side by side in one Simi Valley household. See Lendmire’s VA loan program.
Choose by profile: a strong score and any down payment point to conventional; a modest score and a small down payment point to FHA; eligibility with full entitlement points to VA. A Simi Valley loan officer runs all three on the same numbers before recommending one. Above the conforming limit, see the jumbo loan program.
What to prepare for a Simi Valley scenario review.
Gather these before a Simi Valley review: the ordinary mortgage documents, plus the pieces that settle the first-time-buyer question and the occupancy.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated underwriting finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
When a Simi Valley conventional file surprises someone, the cause is usually one of these: a premium higher than expected, a score that priced differently than hoped, an appraisal under the price, a project that failed review, or a loan amount over the conforming limit.
Use these checks to keep the Simi Valley file clean and fundable.
A Simi Valley file that is ready to review has already answered three questions: what leverage and therefore what insurance, what score and therefore what price, and whether the home is inside the agencies’ rules.
- Plan the insurance: the premium is priced on the score and the leverage inside the published range.
- Confirm the score: a self-pulled score can differ from the decision score.
- Count the properties: each financed property adds reserves to the next file.
Mortgage insurance: how much, and until when
The premium on a Simi Valley loan can be paid monthly, paid by the lender in exchange for a different price, paid as a single premium at closing, or split. The monthly structure cancels under the federal rules, and the others are set by the lender. The calculator shows the monthly structure and the month the thresholds arrive on scheduled payments.
The score sets the cost
The decision score comes from the lender’s report, and with multiple borrowers the automated system uses the average of the median scores. On a Simi Valley conventional file the score rarely ends eligibility, but it sets the loan-level adjustments and insurance premium, so a few points can change monthly cost.
Second homes, rentals, and financed-property limits
A Simi Valley household can hold several conventional loans at once, but each financed property adds reserves to the next file and the agencies cap the number of financed properties a borrower may have. Second homes and rentals are leveraged lower than a principal residence and priced for the occupancy.
Ratios, reserves, and the finding
The total ratio counts the full housing payment, insurance included, plus every other obligation, against gross income, up to the automated ceiling in the snapshot; a manual file is held to the lower pair. The finding also sets the reserves, and a Simi Valley buyer with other financed properties carries more of them.
The conforming limit
The conforming limit is the first thing confirmed on a Simi Valley file near the top of the market, and the high-balance range in some counties sits above the standard figure. Ask a loan officer for the current limit where you are buying before writing the offer; a loan above it needs a larger down payment or the jumbo program.
From a Simi Valley pre-approval to keys in hand.
A conventional purchase runs in a fixed order: pre-approval through the automated system on the score, the ratio, and the reserves; contract and appraisal or value acceptance; underwriting that verifies what the finding assumed; and closing with the insurance structure set. Here is that order for a Simi Valley buyer.
Pre-approval
The first conversation settles the shape: whether the buyer counts as a first-time buyer, what leverage the occupancy allows, how much insurance the down payment carries, and whether conventional is the right program next to FHA and VA for the Simi Valley purchase.
Contract and appraisal
With the contract signed, the lender orders the appraisal, or accepts the value the automated system offers where a waiver applies. Seller contributions are checked against the cap for the leverage, and a condominium’s project documents are collected for review before the file moves on.
Underwriting
The underwriter verifies what the automated finding assumed: income, assets and reserves, credit and any seasoning, occupancy, and the property. A manual file follows the lower ratio pair instead. Conditions are issued, documented, and cleared before final approval.
Closing
Closing is where the structure becomes a payment: principal and interest, the insurance while the loan is above the threshold, taxes and insurance. The Simi Valley buyer takes the keys, and the lender delivers the loan to the agency it was written for.
A brokerage that prices the whole market.
Lendmire is a mortgage brokerage licensed for consumer lending in sixteen states, and on a conventional loan that buys three things: the file priced across several wholesale programs rather than one, the insurance structure and its exit explained before an offer is written, and the terms in writing from a licensed loan officer.
Several programs, one set of numbers
Before any recommendation, the Simi Valley file is priced across the wholesale programs Lendmire works with and run against FHA and VA on the same price, score, and down payment. The buyer sees the payment, the insurance line, and the cash to close for each, and the choice follows the figures.
The insurance explained before the offer
No Simi Valley buyer should learn at the closing table what the insurance costs or how long it lasts. The loan officer walks through the premium for the leverage chosen, the month the thresholds arrive on scheduled payments, and the alternative of a larger down payment.
Licensed, consumer-purpose, in writing
What this page shows are the agencies’ parameters and the wholesale overlays; what a specific Simi Valley loan gets is a written set of terms from a licensed loan officer after the review. Lendmire is a broker, never the lender.
Trusted by buyers & families alike.
Simi Valley conventional loan FAQs
Plain answers to the questions Simi Valley buyers ask most about conventional loans, in the order they usually ask them.
What is a conventional loan, and who is it for?
A conventional loan is the mortgage a Simi Valley buyer with good credit should compare first: a low down payment for the first-time buyer, insurance that cancels, no upfront premium, and the breadth to finance a second home or a rental under the same rules.
How much do I need to put down on a conventional loan in Simi Valley?
The first-time buyer’s minimum down payment is in the snapshot on this page, for a one-unit principal residence with a fixed rate. A first-time buyer is anyone without an ownership interest in a home during the prior three years. Everyone else pays the standard minimum. Second homes, multi-unit homes, and investment property need more, as the leverage table shows. A relative’s gift may fund the whole down payment on a one-unit principal residence.
What credit score do I need for a conventional loan?
The snapshot shows the floor. More useful than the number is what sits around it: a seasoned derogatory event is inside the rules after its waiting period, a thin file may need manual underwriting with tighter ratios, and the score drives the insurance premium on a Simi Valley loan.
How does private mortgage insurance work, and when does it end?
Above the threshold the insurance is part of the Simi Valley payment; below it, there is none. Fannie Mae publishes the typical annual range shown in the snapshot, the insurer prices the actual premium, and the federal cancellation rules end it as equity arrives.
What is the conforming loan limit in Simi Valley?
The limit changes every year and differs by county and unit count, so ask a loan officer for the current figure. It caps the loan, not the price: a Simi Valley buyer above it brings a larger down payment or uses a jumbo loan.
What happens after my Simi Valley offer is accepted?
The lender orders the appraisal or accepts the value the automated system offers, checks the seller contributions against the cap for the leverage, confirms the project review for a condominium and the conforming limit, and underwrites the file against the finding. Closing sets up the escrows and starts the insurance where the loan is above the threshold. How long it takes depends on the appraisal and the conditions underwriting adds.
How does a conventional refinance work?
It depends on the goal: you can change the rate or term with a limited cash-out refinance, or borrow against equity with a cash-out refinance. Each has its own leverage, and a Simi Valley loan officer compares either with a home equity line before recommending one.
Can the down payment be a gift?
Yes. On a one-unit principal residence the entire down payment may come from a relative, a domestic partner, or a fiancé, documented with a gift letter stating that no repayment is expected and evidence of the transfer. On a second home or a two- to four-unit home above the threshold, part of the down payment must be the buyer’s own funds.
What are HomeReady, Home Possible, and HomeOne?
They are the agencies’ affordable programs: the same conforming loan with the top leverage, lower insurance coverage, and in two cases an income limit. A Simi Valley buyer who qualifies usually pays less than on the standard conventional structure at the same leverage.
What does the appraisal check on a conventional loan?
The appraisal sets the value the loan is sized on and reports on condition. A value under the price is the usual detour, and the contract’s appraisal contingency is the buyer’s protection.
A Simi Valley conforming loan, from the first numbers to the closing table.
Ask for a Simi Valley scenario review to confirm the leverage, the insurance and its exit, and the loan the program supports. Lendmire is a broker licensed in sixteen states for consumer mortgages and is never the lender.
This guide covers Simi Valley — for the statewide guidelines, markets, and scenarios, see Conventional Loans in California, part of Lendmire’s conventional loan program.
Nearby markets in California: Thousand Oaks · Camarillo · Santa Clarita · Santa Monica · Burbank · Los Angeles · Oxnard · Ventura
Related programs: FHA Loans · Jumbo Loans · Refinance Loans