Conventional Loans
A conventional loan is a mortgage that isn't insured or guaranteed by a government agency (unlike FHA, VA, or USDA loans). For borrowers with solid credit and a reasonable down payment, conventional financing is often the most straightforward — and frequently the most cost-effective — path to a mortgage.
Who this program tends to fit
- Buyers with credit scores generally in the mid-600s or higher
- Buyers who can put down as little as 3–5% on a primary residence, or more for other property types
- Homeowners refinancing a rate, term, or cash-out scenario
- Buyers purchasing second homes or investment properties
How it works
Conventional loans generally follow guidelines set by Fannie Mae or Freddie Mac, which shapes down payment minimums, credit requirements, and private mortgage insurance (PMI) rules. Because I work with a wholesale network rather than a single bank, I can compare conventional pricing and terms across multiple lenders for your specific scenario, rather than offering just one rate sheet.
Frequently asked questions
Do I need 20% down for a conventional loan?
No — many conventional programs allow down payments as low as 3–5% for qualifying primary-residence purchases. A smaller down payment typically means paying private mortgage insurance (PMI) until you reach a certain equity threshold.
What credit score do I need?
Requirements vary by lender and specific program, and no outcome is guaranteed. In general, conventional loans tend to reward stronger credit with better pricing, but options exist across a range of credit profiles — the best way to know where you stand is a conversation and pre-approval review.
Is a conventional loan better than FHA?
It depends on your credit, down payment, and long-term plans. Conventional loans can have lower ongoing mortgage insurance costs for well-qualified borrowers, while FHA loans can be more flexible on credit and down payment. We can compare both side by side for your situation.
Have questions about Conventional Loans?
I'm glad to talk through whether this program fits your specific situation — no pressure, just a clear answer.