Conventional
Mortgage Loans
Built for Long-Term Value, Control, and Flexibility
At Direct Rate, we help buyers and homeowners across Texas, Florida, California, Colorado, New Mexico, Montana, and Arizona get into the right conventional loan, with transparent pricing, no surprises, and a team that stays with you from pre-approval to closing.
What Is a Conventional Mortgage Loan?
A conventional loan is a mortgage not backed by a government agency. It follows guidelines set by Fannie Mae and Freddie Mac and is funded by private lenders, giving qualified borrowers access to competitive rates and flexible terms.
Commonly used for:
- Primary residences
- Second homes and vacation properties
- Investment properties
- Refinancing out of FHA loans
Not sure which loan type fits your situation?
Talk to an Advisor →Why Borrowers Choose Conventional
Benefits
- Lower lifetime cost for 700+ credit scores
- PMI removable at 20% equity - FHA insurance stays for life
- 10, 15, 20, and 30-year terms available
- Fewer property restrictions than FHA or USDA
- Works for investment properties and second homes
- Best refinance path out of FHA
Things to Know
- 620 minimum credit score required
- PMI required if down payment is under 20%
- Stricter DTI and documentation than FHA
- Investment properties require larger down payments
Ready to see your rate? Takes 10 minutes.
Get Pre-Approved →Do You Qualify?
Here's what most lenders look at for a conventional loan:
- Credit score: 620 minimum - 700+ for best rates
- Down payment: 3% for first-time buyers / 5%-20%+ for most
- Verifiable income and consistent employment history
- Debt-to-income ratio: 45% or below
- Property appraisal supporting the purchase price
Don't assume you don't qualify. Speak with an advisor - we've helped borrowers who thought they couldn't get approved.
Check your eligibility in minutes - no credit pull required.
Check Eligibility →How It Works
We review your goals and build a strategy.
Docs reviewed, pre-approval issued in 24hrs.
Full file review, appraisal, conditions cleared.
Final approval confirmed with title and escrow.
Loan funds. Keys in hand. We stay available.
Ready to get started? Your pre-approval takes less than 24 hours.
Start My Pre-Approval →Is a Conventional Loan Right for You?
Great fit if you...
- Have a 680+ credit score
- Can put 5%-20% down
- Plan to stay in the home 3+ years
- Want to remove PMI as you build equity
- Are buying a second home or investment property
- Want to refinance out of an FHA loan
Consider another program if...
- Have a score below 620 - FHA may be a better fit
- Need 0% down - VA or USDA may work
- Are an eligible veteran - VA likely costs less
- Buying in an eligible rural area - USDA offers 0% down
Not sure which program fits you? We'll compare them side by side.
Compare My Options →Conventional Mortgage Loans by State
Direct Rate is licensed to offer conventional mortgage loans across 7 states. Find your state below for local rates, market guidance, and a licensed advisor who knows your area.
San Antonio, Houston, Dallas, Austin
Conventional Loans in Texas >>Los Angeles, San Diego, Sacramento
Conventional Loans in California >>Miami, Orlando, Tampa, Jacksonville
Conventional Loans in Florida >>Denver, Colorado Springs, Boulder
Conventional Loans in Colorado >>Albuquerque, Santa Fe, Las Cruces
Conventional Loans in New Mexico >>Billings, Missoula, Bozeman
Conventional Loans in Montana >>Phoenix, Tucson, Scottsdale, Mesa
Conventional Loans in Arizona >>Not in one of these states? Get in touch and we will let you know how we can help.
Common Questions
620 is the standard minimum. Scores of 700+ typically unlock significantly better rates. If you're under 620, an FHA loan may be a better starting point - we can compare both options for you.
3% for first-time buyers, 5%+ for most others. Putting down 20% eliminates PMI entirely and lowers your monthly payment.
Yes. Unlike FHA mortgage insurance, conventional PMI can be removed once you reach 20% equity through payments or appreciation. Your lender must cancel it automatically at 22%.
For borrowers with 680+ credit and 5%+ down, conventional usually costs less over time because PMI can be removed. For lower scores or smaller down payments, FHA may offer better terms. We'll run both scenarios for you.
Yes - conventional is one of the only loan types that allows investment property financing. Down payment requirements are typically 15%-25% and qualification standards are stricter.
Absolutely. Once you have enough equity, switching to conventional can eliminate mortgage insurance and significantly lower your monthly payment.
Most conventional loans close in 30-45 days. A complete file can move faster. Our team flags potential delays early to keep things on track.
No. Standard conventional loans have no income limits. Some first-time buyer programs like HomeReady and Home Possible do, but standard products are open to all qualifying borrowers.
Still have questions? Talk to a licensed advisor - no pressure.
Speak With an Advisor →Any inquiry
Get in touch