Types of Loans: Conventional Loans


Home is the nicest word there is.  – Laura Ingalls Wilder

Unless you think you may qualify for a government-backed loan like a VA or FHA loan, odds are a conventional loan will be one of the first types of mortgages you will look at. What is a conventional loan? Put simply, a conventional loan is any mortgage which is not guaranteed by a government agency.



There are a number of different types of conventional loans in Long Beach, CA:

  • Conforming loans. Conventional loans conforming to the Fannie Mae and Freddie Mac guidelines for lending limits fall under this category. While not all conventional mortgages are conforming loans, all conforming loans are a form of conventional loan. The current conventional loan limit for a conforming loan in Long Beach, California is $625,500 for a single unit. A conforming conventional loan is a good starting point in your search, unless you are sure you need another type of loan.
  • Nonconforming, or “Jumbo” loans. Nonconforming conventional loans, also known as jumbo mortgages, are loans which fall above the lending limit mentioned above. Since we live in a very high-cost area, a surprisingly large number of mortgages fall into this category, even for relatively modest homes.
  • Portfolio loans. These are conventional loans where the lenders set the guidelines. They may include special features that other loans do not. You might be able to use investments as securities, for example.
  • Nonprime loans. These loans are marketed to customers with low credit scores. While there are rules for nonprime loans, they do tend to be a great deal more expensive than other types of conventional loans, which makes it extra important to find a good deal.

As you can see, there is a huge amount of variety in the world of conventional mortgages.

When you get in touch with us, we will be able to:

  • Help you figure out what types of loans you qualify for. If there is any chance that you qualify for a government-backed program like a VA or FHA loan, we will see to it that you get approved. That way you can save money and enjoy the best loan terms.
  • If you do need a conventional loan, we will assist you in choosing the product which bets fits your needs.
    • Once we figure out what type of loan would be best for your situation, we will help you find the best possible loan from a trustworthy, established Long Beach mortgage lender. We have access to special deals and discounts through our vast network of lenders that you simply will not be able to find on your own.

Because getting a loan today is like rocket science! 

Have questions about the Conventional Loan process in Long Beach, or want to get started? Give us a call at (562) 437-5585 ext 1 or email us at nicoletas@allwaysfinancial.com to discuss your needs.

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We are happy to help you find the right loan. Send us an email today to see how we can help!

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