Conventional Loans
Flexible and affordable conventional mortgage loans
Navigating mortgage options can often feel overwhelming, like advanced chemistry
classes when you were in high school (did anyone else shutter just now?).
We streamline the pre-qualification with fast pre-approvals and relaxed documentation.
No need for endless paperwork and underwriting marathons.
Our conventional loans allow for as low as 1% down payment, leaving more money in
your pocket at the closing table.
Benefits of Conventional Loans:
Lower Long‑Term Costs
Because mortgage insurance can be removed, conventional loans may provide lower long‑term expenses compared to some government‑backed programs.
More Control
Borrowers can choose from various loan structures, including 15‑, 20‑, and 30‑year terms, and fixed or adjustable rates based on their financial goals.
Ideal for Stronger Credit
While conventional programs continue to expand eligibility, they are especially advantageous for buyers with solid credit histories and stable income.
Frequently Asked Questions about Conventional Loans
What is a conventional mortgage loan?
A conventional mortgage loan is a home loan that is not insured or guaranteed by the federal government. Instead, it follows guidelines set by private investors such as Fannie Mae and Freddie Mac.
Conventional loans are one of the most popular financing options for homebuyers because they often offer competitive interest rates, flexible loan terms, and lower overall costs for qualified borrowers.
What should I know about a conventional loan?
Before selecting a conventional loan, keep these factors in mind:
- Credit Requirements: Higher credit scores typically result in better pricing.
- Down Payment Options: Minimum down payments vary based on occupancy type, credit score, and loan program.
- Mortgage Insurance: Required if your down payment is below 20%, but removable later.
- Loan Limits: Conventional loans must fall within conforming loan limits, which vary by county.
- Appraisal Standards: Homes must meet standard property requirements to qualify.
Is a Conventional Loan Right for Me?
A conventional mortgage can be a smart choice if you have good credit, want flexible loan terms, or prefer a loan program with cancellable mortgage insurance. Whether you’re buying your first home, upgrading to a new one, or financing an investment property, a conventional loan offers stability, flexibility, and long‑term value.
If you’d like help determining whether a conventional loan is the right fit, reach out and we’ll guide you through your options.
What credit score is required for a conventional loan?
Most lenders require a minimum credit score of 620 for a conventional mortgage.
However, borrowers with higher credit scores (typically 700+) may qualify for:
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Lower interest rates
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Lower monthly payments
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Reduced private mortgage insurance (PMI) costs
How much down payment is needed for a conventional mortgage?
Down payment requirements vary depending on the borrower and the loan program, but typically include:
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3%–5% down for first-time homebuyers
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5%–20% down for repeat buyers
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20% down to avoid private mortgage insurance (PMI)
Many buyers are surprised to learn they do not need a 20% down payment to qualify.
What is private mortgage insurance (PMI)?
Private mortgage insurance (PMI) is a type of insurance that protects the lender if the borrower defaults on the loan. PMI is typically required when a borrower puts less than 20% down on a conventional mortgage.
The good news is that PMI on conventional loans can often be removed once the homeowner reaches 20% equity in the home.
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