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
The agencies set the floor at 3% down for a first-time buyer and 5% for a repeat buyer, on a principal residence; the whole down payment may be a gift from a relative on a one-unit home, and twenty percent down removes mortgage insurance from the payment entirely.
Priced on the score; no agency minimum with an automated approval
620 is the working floor, a wholesale overlay rather than an agency rule, since Fannie Mae requires no minimum score for a loan the automated system approves and 620 only on a manual fixed-rate file. Above the floor, each step up in score lowers the cost of the loan and of the insurance.
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.
Not a commitment to lend, not an offer of credit, not a quote. The figures shown are current conforming program parameters and wholesale overlays that change without notice and apply only after full underwriting of the borrower and the property; the mortgage insurance range is Fannie Mae’s published typical range and the premium on any loan is set by the insurer. Conforming loan limits apply by county. Lendmire is a mortgage broker licensed in sixteen states for consumer mortgages, never the lender. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
Four rules shape a Paramount conventional file: leverage by occupancy and buyer, credit scoring that prices rather than gates, mortgage insurance that cancels, and ratios set by the underwriting path. Each is explained below with the reason behind it.
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 agencies lend most on a home the borrower lives in and less as the occupancy changes: a one-unit principal residence reaches the top leverage, with the first-time buyer’s minimum the lowest down payment in the program; two- to four-unit homes, second homes, and investment properties step down from there, as the table in the snapshot shows for a Paramount buyer.
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 Paramount 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 Paramount 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
The automated finding is the hinge of a conventional file: it reads the income, the assets, the credit, and the property, allows a total debt ratio up to the automated maximum, and names the reserves the file must show. A Paramount underwriter then verifies what the finding assumed.
The calculator runs this on a Paramount 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 Paramount buyers borrow — and how a conforming loan fits.
These numbers are Paramount’s, not any one borrower’s: owner households, median home value, and household income from the U.S. Census Bureau. They give the scale of a typical purchase here; the score, the appraisal, and the household’s own income give the loan.
Market context only. Higher values mean a larger down payment in dollars and a larger insurance premium; lower values mean a payment that leaves more room under the ratio ceiling. The percentages do not move; what they amount to does.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Paramount neighborhoods, distinct conventional files.
No single conventional file describes Paramount. 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.
Multi-unit conversions
A converted Paramount duplex finances on a conventional loan with the buyer in one side and the other side’s rent documented toward the ratio the way the agencies allow. The appraisal reads both units and the rents. The median owner-occupied home value in Paramount runs near $533,700 on the latest Census estimate.
Rural-edge and acreage properties
The rural edge of Paramount brings two checks: residential rather than farm use, and an appraisal supported by what has sold nearby. Both are routine when the home is the point and the land is incidental. About 57% of Paramount’s households rent — roughly 8,338 renter households on the latest Census estimate.
In-town neighborhoods
In Paramount’s older neighborhoods the value report decides more than the condition report. A buyer at the first-time-buyer minimum pays insurance for a while; a buyer at twenty percent pays none. Roughly 6,280 Paramount households own their homes on the latest Census estimate — 43% of all households, the pool a conventional purchase joins.
Manufactured homes
A manufactured home in Paramount is eligible for conventional financing when it meets the agencies’ requirements: a permanent foundation, real-estate title with the land, and the construction standard the appraiser checks. Leverage and cost differ from a site-built home. Paramount is home to about 52K people.
Newer subdivisions on the bypass
A newer Paramount purchase rarely draws a condition note. The file turns on the score, the leverage chosen, and the ratio at the price once the insurance premium is in the payment. On a one-unit principal residence at Paramount’s median value, the first-time buyer’s minimum down payment comes to about $16,000 and the standard minimum to about $26,700 — 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.
Everyday values and the first-time minimum
At Paramount’s price levels the conventional structure is at its most comfortable: a small down payment that may be a gift, a premium that ends on schedule, and a payment that typically leaves room under the ratio on a local income. Median household income in Paramount sits near $75,250 on the latest Census estimate.
Each Paramount submarket has its own property story, and the appraisal and the project review are where that story is told. The leverage limits, the cancellation rules, and the automated finding are the constants.
Four ways Paramount buyers put a conforming loan to work.
A good use of a conventional loan is one its shape fits: a decent score, a down payment of any size from the minimum up, an occupancy the agencies allow, and a loan inside the conforming limit. Four common Paramount uses follow.
Buy an investment property
A Paramount investor buying one to four units on a conventional loan puts down what the leverage table shows for investment property, documents agency-allowed rent toward qualifying, and holds reserves the finding requires per financed property. It is an individual agency loan under investment-property rules, not an investor DSCR loan.
Buy a second home
Conventional financing is the consumer program that reaches a second home: a Paramount buyer brings the down payment the leverage table shows for that occupancy, qualifies on the full payment of both homes, and shows the reserves the finding requires. The home must be for the owner’s use, not a rental business.
Buy a first home at the first-time-buyer minimum
A Paramount 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.
Buy with twenty percent down and no insurance
A Paramount buyer with twenty percent down gets the conventional loan’s cleanest form: no mortgage insurance, loan-level adjustments at the best tier the score allows, and a payment of principal, interest, and escrows alone. Second homes and investment property are priced from the same structure.
Estimate the payment on a Paramount price before requesting a quote.
Before you ask for a quote, size the payment yourself: the Paramount 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.
Paramount conventional payment estimate
The defaults are a Paramount 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 $535,000 price near Paramount’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.
The alternatives put the conventional loan’s cost in perspective: FHA charges a premium every month and an upfront premium at closing, VA charges a one-time fee, conventional charges a premium only until equity arrives. The comparison below is written for a Paramount buyer weighing all three.
Conventional, FHA, or VA.
This program offers a low down payment for first-time buyers, insurance set by the score and removed once the balance falls below the threshold, and no upfront premium on the monthly structure. Of the three programs compared here, it alone finances second homes and investment property. The cost is a credit standard that prices a weak score heavily.
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 Paramount 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 Paramount 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 Paramount 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 Paramount scenario review.
The paperwork is the standard mortgage set, with the automated finding deciding how much of it the file actually needs; here is what a Paramount scenario review typically draws on.
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.
A handful of details decide whether a Paramount conventional file closes as planned, closes at a different cost, or stalls. These are the ones that come up most.
Use these checks to keep the Paramount file clean and fundable.
Three things to settle before a Paramount review: how the mortgage insurance will be structured and when it ends, where the decision score lands and what it prices, and whether the property has any agency question attached.
- Plan the insurance: twenty percent down carries no insurance at all.
- Confirm the score: a self-pulled score can differ from the decision score.
- Structure the contract: a relative’s gift may fund the whole down payment on a one-unit principal residence.
Mortgage insurance: how much, and until when
Cancellation on request needs a good payment history, no subordinate liens, and no decline in value; automatic termination needs only that the loan be current. A Paramount owner whose home has gained value may also ask the servicer to recognize the current value under its own rules, which is a servicer decision rather than a program right.
The score sets the cost
The score does two jobs on a Paramount file: it feeds the automated assessment alongside the rest of the credit file, and it sets the cost of the loan and the insurance. A buyer close to a cost tier sometimes gains more from a short wait and a paid-down balance than from any other change.
Seller contributions and the down payment
A Paramount contract can shift most closing costs to the seller inside the cap for the leverage, which leaves the buyer bringing the down payment and little else. On second homes and two- to four-unit homes above the threshold, part of the down payment must be the buyer’s own funds.
Second homes, rentals, and financed-property limits
A Paramount 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
Enter income in the calculator to see where a Paramount scenario lands against the automated maximum; the finding, the score, and the reserves decide the rest, and the ratio drops on its own once the insurance cancels, because the premium leaves the housing payment.
From a Paramount 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 Paramount buyer.
Pre-approval
A Paramount pre-approval is a sizing exercise run through the automated system: the score, the income, the assets, the occupancy, and the price. The finding sets the ratio room and the reserves, and the loan officer puts the pre-approval in writing for the offer.
Contract and appraisal
The Paramount contract sets the price and the contributions; the appraisal, or the system’s value acceptance, sets the value. Both feed the loan amount, and the lender confirms the project review and the conforming limit before underwriting begins.
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
At closing the loan funds at the chosen leverage, mortgage insurance starts with the first payment if the loan is above the threshold, and escrows for taxes and insurance are set up. A Paramount buyer signs the note and security instrument, occupies the home within the occupancy window, and the agency buys the loan.
A brokerage that prices the whole market.
Lendmire never lends. It reads a Paramount file against conventional, FHA, and VA, matches the program to the profile, and keeps the premium, the cost tier, and the conforming limit in front of the buyer before anything is signed.
Several programs, one set of numbers
Before any recommendation, the Paramount 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 Paramount 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 Paramount 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.
Paramount conventional loan FAQs
The questions below come up on nearly every Paramount conventional conversation. The answers are general; the figures in the snapshot above are the program’s current parameters.
What is a conventional loan, and who is it for?
A conventional loan is the mortgage a Paramount 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 Paramount?
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 Paramount loan.
How does private mortgage insurance work, and when does it end?
Mortgage insurance applies when the loan runs above the leverage threshold in the snapshot and is paid monthly as part of the payment. The premium is priced by the insurer on the score and the leverage, inside the published range the snapshot shows. Under the Homeowners Protection Act the borrower may request cancellation at the request threshold on the original value, the servicer must terminate it automatically at the termination threshold, and it ends no later than the midpoint of the term.
What is the conforming loan limit in Paramount?
Ask a loan officer for the county’s current limit; it changes yearly and by unit count. Above it, a Paramount purchase is still possible with a larger down payment on a conforming loan or on a jumbo loan.
What debt-to-income ratio does a conventional loan allow?
It depends on the underwriting path. The snapshot shows the automated maximum and the manual pair; enter income in the calculator to see where a Paramount scenario lands against the automated figure.
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 does the appraisal check on a conventional loan?
The value and the general condition. A conventional appraisal is lighter on condition than a government appraisal, and a short value re-sizes the loan on a Paramount file; the buyer brings the difference, renegotiates, or releases the contract under its contingency.
Should I choose a conventional loan or FHA?
Run both. A strong score and a down payment above the minimum point to conventional, where the insurance is smaller and ends; a modest score and the smallest possible investment point to FHA. The comparison is made on the actual payment and the cash to close.
Can I use a conventional loan to buy a condominium?
Yes, with one extra step: the project review. Warrantable projects close on the ordinary file; the first-time buyer’s minimum, the insurance rules, and the ratio ceiling are unchanged.
A Paramount conventional loan sized to the price, the score, and the leverage.
A Paramount conventional purchase starts with three questions: the score, the down payment, and the occupancy. Lendmire answers them, prices the programs, and writes up the one that fits.
This guide covers Paramount — for the statewide guidelines, markets, and scenarios, see Conventional Loans in California, part of Lendmire’s conventional loan program.
Nearby markets in California: Bellflower · Lynwood · Downey · South Gate · Compton · Lakewood · Norwalk · Carson
Related programs: FHA Loans · Jumbo Loans · Refinance Loans