Conventional Loans
The Flexible Choice
The most popular home financing option in America. Flexible terms, competitive rates, and the traditional mortgage solution trusted by millions of borrowers.
Quick Conventional Loan Quote
Traditional financing with flexible terms and competitive rates
What Are Conventional Loans?
Conventional loans are traditional mortgages not backed by government agencies like FHA, VA, or USDA. They offer the most flexibility and are ideal for borrowers with good credit and stable income. As the backbone of American home financing, they represent over 75% of all mortgage originations.
Flexible Down Payments
As low as 3% down for qualified first-time buyers
No Government Backing Required
Traditional lending with competitive market rates
Multiple Property Types
Primary homes, second homes, and investment properties
Quick Qualification Check
Conventional Loan Requirements
Conventional loans offer flexibility with competitive requirements for qualified borrowers.
Credit Score Requirements
Down Payment Options
Debt-to-Income Ratios
Lower DTI ratios typically qualify for better interest rates and terms.
2025 Conventional Loan Limits
Understanding loan limits helps determine which conventional loan type fits your purchase price and property type.
Baseline (Most U.S. Areas)
High-Cost Areas
Alaska, Hawaii, Guam & USVI
Private Mortgage Insurance (PMI)
Understanding PMI helps you make informed decisions about down payments and monthly costs.
When PMI Is Required
Down Payment Less Than 20%
PMI protects the lender if you default on the loan
Typical PMI Cost
0.3% to 1.5% of loan amount annually, paid monthly
Example: $400K Loan
PMI could range from $100-$500 per month
PMI Removal Options
Automatic Removal
PMI automatically cancels when you reach 78% loan-to-value
Request Removal
Request cancellation at 80% LTV with property appraisal
Refinance Option
Refinance to eliminate PMI if home value increased
30-Year vs 15-Year Comparison Example
| Loan Details | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Loan Amount | $400,000 | $400,000 |
| Interest Rate | 6.75% | 6.25% |
| Monthly Payment | $2,594 | $3,444 |
| Total Interest Paid | $533,840 | $219,920 |
| Interest Savings | — | $313,920 |
Conventional Loan Success Stories
Real clients who achieved their homeownership dreams with conventional financing.
Frequently Asked Questions
Get answers to common questions about conventional loans and the application process.
What credit score do I need for a conventional loan?
The minimum credit score for a conventional loan is typically 620, but you'll get better rates with a score of 740 or higher. We work with borrowers across the credit spectrum to find the best conventional loan options.
How much can I borrow with a conventional loan?
Conventional conforming loans can go up to $766,550 in most areas, and up to $1,149,825 in high-cost areas like Greater Boston. Loans above these limits are considered jumbo loans with different requirements.
What's the difference between conventional and FHA loans?
Conventional loans typically require higher credit scores and down payments but offer more flexibility and potentially lower overall costs. FHA loans allow lower credit scores and down payments but require mortgage insurance for the life of the loan.
Can I use a conventional loan for an investment property?
Yes! Conventional loans can be used for primary residences, second homes, and investment properties. Investment properties typically require a 25% down payment and have slightly higher interest rates.
How quickly can I close on a conventional loan?
Most conventional loans close within 30-45 days, but we can often close faster with complete documentation. Our streamlined process and dedicated underwriting team help expedite approvals.
When does PMI get removed from my conventional loan?
PMI automatically cancels when you reach 78% loan-to-value ratio. You can request removal at 80% LTV with a new appraisal. PMI can also be eliminated through refinancing if your home value has increased significantly.
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