Conventional Loans

The most common path to homeownership.

Conventional loans are the standard mortgage option for most buyers — flexible, widely available, and structured to fit a broad range of credit profiles and down payment scenarios.

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Conventional Loans, Explained

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What is a conventional loan?

A conventional loan is a mortgage that isn't backed by a federal agency (FHA, VA, USDA). Instead, it's offered by private lenders and typically conforms to guidelines set by Fannie Mae or Freddie Mac. Conventional loans are the most common type of mortgage in America — most homebuyers ultimately use one.

Who it's for

Is conventional a fit for you?

Buyers with strong-to-excellent credit

Conventional rewards good credit with the best pricing.

Borrowers with 3% or more to put down

Qualifying first-time buyers can put as little as 3% down; most other buyers start at 5%.

Buyers who want to drop PMI eventually

Unlike FHA, conventional mortgage insurance drops off automatically at 78% loan-to-value.

Move-up buyers & second-home purchasers

Most flexible program for non-primary residences.

Key benefits

Why buyers choose conventional.

Most flexible property types

Primary, second homes, and investment properties all eligible.

Lower mortgage insurance costs

Generally cheaper than FHA for buyers with stronger credit.

PMI drops off automatically

At 78% LTV, no refinance needed to remove monthly mortgage insurance.

Up to 97% financing

As little as 3% down for qualifying first-time buyers.

Wide loan limits

Conforming limits cover most homes; jumbo options available beyond.

Common questions

Conventional loan FAQs.

What's the minimum credit score for conventional?

Most conventional loans look for a credit score around 620 or higher, and stronger credit unlocks better pricing. The exact threshold depends on your full picture — down payment, debt-to-income, and the property. We'll review where you stand and what it means for your options.

How much down do I need?

Qualifying first-time buyers can put as little as 3% down; most other buyers start at 5%. More down can mean lower mortgage insurance and a stronger offer, but you have flexibility. We'll model a few scenarios so you can choose what fits.

What's PMI and when does it go away?

PMI (private mortgage insurance) is a monthly cost added when your down payment is under 20%. With conventional, the good news is it drops off automatically once you reach 78% loan-to-value — no refinance required — and you can often request removal earlier at 80% LTV.

Can I use conventional for an investment property?

Yes. Conventional is one of the most flexible programs for non-primary residences — second homes and investment properties are both eligible, typically with a larger down payment. If you're building a portfolio, we'll also compare it against DSCR and other investor programs.

How do conventional and FHA compare?

FHA is often easier on credit and allows lower scores, but its mortgage insurance usually stays for the life of the loan. Conventional rewards stronger credit with better pricing and lets PMI fall off automatically. The right answer depends on your credit, down payment, and goals — we'll run both side by side.

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Is conventional right for you?

Schedule a 15-minute call and we'll model your options — no pressure, no pitch.

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