Conventional Loans
Flexible financing for buyers with steady credit.
A conventional loan is any mortgage not backed by a government agency. Because private lenders and investors like Fannie Mae and Freddie Mac set the guidelines, terms can be tailored more flexibly to a wide range of buyers - including down payments as low as 3% for qualified borrowers.
What Conventional Financing Looks Like
A quick read on who this program fits, what it takes to qualify, and where the money goes at closing - so nothing feels like a surprise.
Who It’s For
Best fit for steady-income buyers with mid-to-strong credit, and repeat buyers who want to skip government insurance.
- Buyers with credit scores of 620 or higher
- Repeat buyers with stable income and manageable debt
- Buyers who want to avoid upfront government mortgage insurance
How You Qualify
Underwriting follows Fannie Mae and Freddie Mac guidelines - credit, income, and property support the loan.
- Minimum credit score generally 620
- Debt-to-income ratio typically under 50%
- Documented income and employment history
What It Costs
Down payment, mortgage insurance (until 20% equity), and standard closing costs - no upfront funding fee.
- 3%–20% down typical
- PMI drops off at 20% equity
- Closing costs 2%–5%
What You’ll Need to Qualify
- Minimum credit score generally 620
- Debt-to-income ratio typically under 50%
- Documented income and employment history
- Property appraisal that supports the purchase price
Have These Ready
- Two most recent pay stubs
- Two years of W-2s or 1099s
- Two months of bank statements
- Photo ID
- Two years of tax returns if self-employed
The Upside - and What to Weigh
Every program has trade-offs. Here’s the honest picture side by side, without the marketing gloss.
Benefits
- Down payments starting at 3% for qualified first-time buyers
- No upfront mortgage insurance premium (unlike FHA)
- PMI can be removed once you reach 20% equity
- Flexible for primary homes, second homes, and investment properties
Considerations
- Stricter credit and income standards than FHA
- PMI required when down payment is under 20%
- Higher-priced homes may require jumbo financing
Run the Numbers on a Conventional Loan
Adjust the price, down payment, and rate to see an estimated monthly payment. Great for narrowing the search before you formally apply - a quick preapproval confirms your real numbers.
Estimate only. Taxes, insurance, and PMI vary by location and loan program.
Get Preapproved
From Application to Keys in 21–35 Days
- 01Apply
Quick online form or a 10-minute call.
- 02Verify
Income, assets, and credit reviewed together.
- 03Appraisal
Property value confirmed for the loan amount.
- 04Close
Sign, fund, and get your keys.
More for Conventional Loans Shoppers
Compare Similar Programs
Run the Numbers
Read up Before You Apply
- FHA vs. Conventional: Which Loan Fits You?
A side-by-side look at credit, down payment, and mortgage insurance - with real math on which loan actually costs less.
Open - PMI: What It Is, When It Drops
Private mortgage insurance rules, cost drivers, and how to remove it faster than the automatic schedule.
Open - Credit Score Basics for Mortgage Borrowers
What score lenders actually pull, the two levers that move it fastest, and quick wins before you apply.
Open
Questions We Hear About Conventional Loans
Can’t find yours here? A licensed advisor can walk through your specific situation in under 15 minutes.
Straight answers, no pressure - email or call directly.
See If a Conventional Loan Fits Your Situation.
A 10-minute preapproval gives you real numbers and a licensed advisor to answer questions - no pressure, no obligation.
