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Conventional Loan Info (option one)
If you need assistance in locating a lender, we can help!
A Conventional Loan is a mortgage not backed by a government agency (unlike FHA, VA, or USDA). It’s one of the most common loan types and is ideal for buyers with strong credit and stable income.
Key Features
- Down payment: as low as 3% (first-time buyers), typically 5–20%
- No upfront mortgage insurance
- Private Mortgage Insurance (PMI) required only if putting less than 20% down
- Fixed-rate or adjustable-rate options
- Available for primary homes, second homes, and investment properties
Credit & Income Requirements
- Credit score: usually 620+ (higher scores get better rates)
- Debt-to-income (DTI): typically up to 45%
- Fewer property condition rules than FHA
Mortgage Insurance (PMI)
- Required when putting <20% down
- Can be removed once the loan reaches 80% loan-to-value
- Usually cheaper than FHA’s lifetime MIP
What Homes Qualify?
- Single-family homes
- Townhomes
- Condos (must meet lender guidelines)
- New construction & existing homes
Conventional Loan Info (option two)
If you need assistance in locating a lender, we can help!
A Conventional Loan is a mortgage that is not backed by the government (unlike FHA, USDA, or VA). It’s one of the most common loan types and is ideal for buyers with strong credit and stable income.
Key Features
- Down payment: as low as 3% for qualified buyers
- Credit score: typically 620+ (higher scores get better rates)
- Private Mortgage Insurance (PMI) required if putting down less than 20%
- Fixed-rate and adjustable-rate options
- Available for primary homes, second homes, and investment properties
Mortgage Insurance (PMI)
- Required only if the down payment is under 20%
- PMI can be removed once the loan reaches ~78–80% loan-to-value
- Usually cheaper than FHA’s lifetime MIP for strong-credit borrowers
Who Is a Conventional Loan Best For?
- Buyers with good to excellent credit
- Those who can put 3–20% down
- Homeowners planning to avoid long-term mortgage insurance
- Buyers purchasing higher-priced homes (higher loan limits than FHA)
What Homes Qualify?
- Single-family homes
- Townhomes
- Condos (must meet lender guidelines)
- New construction or resale
