Conventional Loans
Financing not backed by a government agency — usually means fewer overlays, more flexible property types, and no upfront mortgage insurance premium for buyers with stronger credit.
- Down payments as low as 3% for qualifying first-time buyers, 5% for repeat buyers
- No upfront mortgage insurance premium, unlike FHA
- PMI cancels automatically once you reach 80% loan-to-value
- Available on primary residences, second homes, and investment property
- Terms from 10 to 30 years, fixed or adjustable
Ask About Conventional
Conventional loans are the default financing most buyers picture — no government backing, no upfront mortgage insurance premium, and underwriting that rewards stronger credit and documented income with better pricing. They’re often the cheaper long-term option once PMI is factored in, but the qualifying bar sits higher than FHA on both credit and debt-to-income.
Who This Is For
- Buyers with a credit score of 620+ and stable, documentable income
- Buyers who want to avoid FHA's upfront and lifetime mortgage insurance
- Repeat buyers with an existing down payment or home equity to roll over
Conventional FAQs
What credit score do I need for a conventional loan?
Most conventional programs start at 620, though the rate and down payment you qualify for improve meaningfully above 680–700.
How much down payment do I need?
As little as 3% for eligible first-time buyers on a fixed-rate loan; 5% is more typical for repeat buyers.
When does PMI go away?
Once your loan balance reaches 80% of the original property value, PMI cancellation is automatic — no request needed on your part.
Can I use a conventional loan for an investment property?
Yes, though down payment requirements are higher — typically 15–25% — and pricing is adjusted for the added risk.
Related Resources
Ready to Talk Through Conventional?
Tell us about your situation and we'll tell you honestly what it will take to qualify.
