Conventional Home Loans Built for Long-Term Value, Control, and Flexibility
Conventional
Mortgage
WHAT IS A CONVENTIONAL LOAN?
A conventional home loan is a mortgage not insured or guaranteed by a government agency. Instead, it follows guidelines set by Fannie Mae and Freddie Mac and is issued by private lenders.
Because conventional loans are market-driven rather than government-backed, they offer greater flexibility, competitive pricing, and long-term cost advantages for qualified borrowers.
They are commonly used for:
- Primary residences
- Second homes
- Investment properties
- Refinancing existing mortgages
WHY BORROWERS CHOOSE CONVENTIONAL LOANS
Lower lifetime cost for strong credit profiles
PMI removable once equity is built
Flexible terms: 15, 20, 30 years available
Fewer restrictions than FHA or USDA loans
Ideal for refinancing out of FHA loans
QUALIFICATION REQUIREMENTS
Typical requirements include:
- Credit score: 620+ (higher scores = better pricing)
- Down payment: 3%–20%+
- Income verification: Employment and income documentation
- Debt-to-income ratio: Within acceptable limits
- Property appraisal: Professional valuation required
Each borrower is reviewed individually — approval depends on the full financial picture.
HOW A CONVENTIONAL LOAN WORKS
Pre-Qualification
Strategy discussion and initial review
Documentation
Review and underwriting process
Appraisal
Property valuation and verification
Closing
Final approval and completion
Loans may be sold after closing, but your terms and payments remain unchanged.
WHO THIS LOAN IS BEST FOR
Best fit if you:
- Have good to excellent credit (680+)
- Want to minimize long-term costs
- Plan to stay in the home 5+ years
- Prefer flexibility with PMI removal
Not ideal if you:
- Have limited or poor credit history
- Need very low down payment options
- Prefer government-backed protections
PROS & CONSIDERATIONS
Pros
- Highly competitive interest rates
- PMI can be removed with equity
- Flexible property use cases
- No upfront mortgage insurance
Considerations
- Higher qualification standards
- PMI required with less than 20% down
- Stricter income/credit requirements
FAQ — CONVENTIONAL LOANS
Yes. Once sufficient equity is reached (typically 20%), PMI can often be removed, reducing your monthly payments significantly.
For borrowers with stronger credit profiles (680+), conventional loans usually cost less over time due to lower insurance costs and the ability to remove PMI.
Absolutely. Many borrowers strategically refinance from FHA into conventional once their credit improves and they've built sufficient equity.
Yes, conventional loans can be used for investment properties, though they typically require higher down payments (15-25%) and may have slightly higher rates.
Most conventional loans close in 30–45 days, depending on documentation completeness, appraisal scheduling, and underwriting workload.
See If a Conventional Loan Is Right for You
Let's discuss your options and find the perfect financing solution for your needs.