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
Private Mortgage Insurance (PMI) can be removed
Wide range of term options (15, 20, 30 years)
Fewer property restrictions than FHA or USDA
Strong option for refinancing out of FHA loans
QUALIFICATION REQUIREMENTS
Typical requirements include:
- Credit score: 620+ (higher scores = better pricing)
- Down payment: 3%–20%+
- Verifiable income and employment
- Acceptable debt-to-income ratio
- Property appraisal
Each borrower is reviewed individually — approval depends on the full financial picture.
HOW A CONVENTIONAL LOAN WORKS
Pre-qualification and strategy discussion
Documentation review and underwriting
Property appraisal and verification
Final approval and closing
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
- Want lower long-term costs
- Plan to stay in the home for several years
- Want flexibility with PMI removal
Not ideal if you:
- Have limited credit history
- Need very low down payment assistance
- Prefer government-backed protections
PROS & CONSIDERATIONS
Pros
- ✔ Competitive rates
- ✔ PMI removable
- ✔ Flexible use cases
Considerations
- ⚠ Higher qualification standards
- ⚠ PMI required below 20% down
FAQ — CONVENTIONAL LOANS
Yes. Once sufficient equity is reached, PMI can often be removed, reducing monthly payments.
For borrowers with stronger credit, conventional loans usually cost less over time.
Absolutely. Many borrowers refinance from FHA into conventional once credit improves.
Yes, with higher down payment requirements.
Typically 30–45 days depending on documentation and appraisal timing.
