Conventional

Buyers with 5%+ down and 620+ credit score

The standard choice for borrowers with good credit and a down payment. Competitive rates, flexible terms (15, 20, or 30 years), and no mortgage insurance with 20% down.

Program Overview

How Conventional Loans Work

A conventional loan is a mortgage that is not insured or guaranteed by a government agency like the FHA, VA, or USDA. Instead, conventional loans follow guidelines set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that purchase most residential mortgages in the United States.

Because conventional loans carry no government insurance, they tend to offer the most competitive interest rates for borrowers with strong credit profiles. If you can put at least 20% down, you can avoid private mortgage insurance (PMI) entirely, which lowers your effective monthly cost compared to most other loan types.

Conventional loans come in a wide range of structures. Fixed-rate options are available in 10, 15, 20, 25, and 30-year terms. Adjustable-rate options can start with a fixed period of 3, 5, 7, or 10 years before adjusting. This flexibility makes it possible to match your loan structure to your financial goals and timeline.

These loans can be used for primary residences, second homes, and investment properties. Loan amounts up to the current conforming limit ($766,550 in most areas) qualify as conforming conventional loans, which typically receive the best pricing. Amounts above this threshold become jumbo loans with different requirements.

Key Features

Down payments as low as 3% for qualified first-time buyers
No upfront mortgage insurance premiums
PMI cancels automatically at 78% loan-to-value
Available for primary, second home, and investment properties
Fixed and adjustable rate options
Terms from 10 to 30 years

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The Process

How It Works

Get Pre-Approved

We review your income, assets, credit, and financial goals to determine your buying power and the best conventional loan structure for your situation.

Choose Your Loan Structure

Fixed or adjustable rate? 15 or 30 years? We help you select the term and rate type that aligns with your financial strategy, not just the lowest monthly payment.

Underwriting and Appraisal

Your application goes through underwriting while a licensed appraiser confirms the property value. We manage the process and keep you informed at every step.

Close and Move In

Once all conditions are cleared, you sign your closing documents and receive the keys. The entire process typically takes 25 to 35 days from contract to close.

Ideal Borrower

Who This Program Is For

Conventional loans work well for borrowers who have established credit, some savings for a down payment, and stable income documentation.

First-time buyers with at least 3-5% saved for a down payment

Move-up buyers using equity from a current home sale

Buyers purchasing a second home or vacation property

Investors acquiring rental property (typically 15-25% down required)

Borrowers with 740+ credit who want the most competitive rates available

Homeowners refinancing to a lower rate or shorter term

Run the Numbers

Use our calculator to explore payment scenarios, compare options, and see how a conventional loan could fit your financial plan.

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Common Questions

Conventional FAQ

Most conventional loan programs require a minimum credit score of 620. However, borrowers with scores of 740 and above typically qualify for the most favorable available rates. Your credit score also affects your mortgage insurance costs if you put less than 20% down.

The most straightforward way is to make a down payment of at least 20%. If that is not possible right now, PMI on a conventional loan automatically cancels once your loan balance reaches 78% of the original appraised value. You can also request PMI removal at 80% LTV with a good payment history.

A conforming loan meets the guidelines and loan limits set by Fannie Mae and Freddie Mac (currently $766,550 in most areas). Non-conforming loans exceed these limits and are called jumbo loans. Conforming loans typically offer lower rates because they can be sold on the secondary market more easily.

Yes. Conventional loans allow gift funds from family members for your down payment and closing costs. A gift letter from the donor is required, and the funds must be documented with a paper trail. Some programs may require that a portion of the down payment comes from your own funds.

Ready to Explore Conventional Loans?

Let our team walk you through the details, run the numbers for your situation, and help you decide if this is the right program for your goals.

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