Conventional Loans
Conventional loans are one of the most common ways to buy a home — and they’re not backed by the government.
That usually means more flexibility and strong options for borrowers with stable income and solid credit.
Conventional can be a great fit if you want competitive pricing, multiple term options, and the ability to remove PMI later once you reach enough equity.
Conventional can be a great fit if you want competitive pricing, multiple term options, and the ability to remove PMI later once you reach enough equity.
Why Buyers Choose Conventional Loans
- Competitive pricing: Great rates for buyers with stronger credit profiles.
- Flexible options: Multiple term choices (15/20/30) and fixed or ARM options.
- PMI isn’t forever: PMI can often be removed once you reach enough equity.
- More property flexibility: Works for many primary homes, second homes, and some investment scenarios.
Some Key Conventional Characteristics
- Down payments can be as low as 3% for qualified first-time buyers (program dependent).
- Typically requires stronger credit than FHA (often 620+).
- PMI may apply if putting less than 20% down — and can often be removed later.
- Works for primary homes, second homes, and some investment scenarios (guidelines vary).
Who Conventional Loans Are Best For
- Buyers with steady income and stronger credit.
- Homebuyers who want competitive rates and more pricing options.
- Borrowers planning to reach 20% equity and remove PMI later.
- Those purchasing a primary home or possibly a second home.