Standard mortgage financing with competitive terms.
A conventional loan is a mortgage not insured or guaranteed by the government. These loans offer competitive interest rates, flexible terms, and are ideal for borrowers with strong credit and stable income. Perfect for purchasing a primary residence, second home, or investment property.
Standard mortgages with flexible terms.
Backed by private lenders and following Fannie Mae and Freddie Mac guidelines — competitive rates for qualified borrowers.
Competitive Interest Rates
Conventional loans often offer lower interest rates compared to government-backed loans, especially for well-qualified borrowers.
Flexible Down Payment
As low as 3% for first-time homebuyers, or 5% for repeat buyers. Put 20% down to avoid Private Mortgage Insurance.
Multiple Property Types
Available for primary residences, second homes, and investment properties (1–4 units).
PMI Cancellation
Once you reach 20% equity, you can request to cancel Private Mortgage Insurance, reducing your monthly payment.
Fixed or Adjustable Rates
Choose between fixed-rate mortgages (15, 20, 30 years) or ARMs with initial fixed periods (5, 7, 10 years).
Higher Loan Limits
Conforming loans up to $766,550 in most areas, with higher limits in high-cost counties. Jumbo available for larger.
Conventional loan requirements.
Conventional loan details.
Conventional Loan
Standard income verification · private lender funded.
Qualification Details
- Credit Score 620+ FICO
- Down Payment 3% first-time / 5% repeat
- DTI Ratio 43% (up to 50%)
- Loan Limit $766,550 conforming
- Term 15, 20, 30 yr fixed or ARM
Income & Property
- W-2s, tax returns, pay stubs required
- Stable employment (typically 2 yrs same field)
- Alt-doc available for self-employed
- Primary residences, second homes, 1–4 unit investment
- PMI required under 20% down (removable at 20% equity)
- Fannie Mae / Freddie Mac backed
Why borrowers choose conventional.
No Upfront MIP
Unlike FHA loans, conventional loans don't require upfront mortgage insurance premiums.
PMI Can Be Removed
Once you reach 20% equity, you can cancel PMI. FHA MIP often stays for the life of the loan.
Higher Loan Limits
Conforming limits are higher than FHA limits in many areas, allowing for larger loan amounts.
Investment Welcome
Conventional loans are great for investors purchasing 1–4 unit rental properties.
Frequently asked questions.
A conventional loan is a mortgage not insured or guaranteed by the government. These loans are backed by private lenders and follow guidelines set by Fannie Mae and Freddie Mac. They offer competitive interest rates and flexible terms for qualified borrowers.
Most conventional loans require a minimum credit score of 620. Better rates are typically available for scores 660–740 or higher. Higher credit scores may qualify for lower down payment options.
First-time homebuyers may qualify for as little as 3% down. Repeat buyers typically need 5% down. To avoid Private Mortgage Insurance (PMI), you will need 20% down.
Private Mortgage Insurance (PMI) protects the lender if you default. You can avoid PMI by putting 20% down. If you have PMI, you can request cancellation once you reach 20% equity in your home.
The conforming loan limit is currently $832,750 for most counties. Higher limits apply in high-cost areas. Loans above these limits are considered jumbo loans and may have different requirements.
Yes, conventional loans are available for 1–4 unit investment properties. Down payment requirements are typically higher (15–20%) and interest rates may be slightly higher than primary residence loans.
Fixed-rate mortgages have the same interest rate for the entire loan term (typically 15, 20, or 30 years). Adjustable-rate mortgages (ARMs) have a fixed rate for an initial period (e.g., 5, 7, or 10 years) before adjusting periodically based on market conditions.
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