Conventional Loan
Flexible down payment options, competitive interest rates, and faster underwriting. Get pre-qualified in minutes.
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What Is a Conventional Loan?
A conventional loan is a mortgage offered by private lenders such as banks, credit unions, and mortgage companies. Unlike FHA or VA loans, conventional loans are not backed by a government agency.
They are one of the most popular home financing options in the U.S. due to their flexibility, competitive rates, and ability to remove mortgage insurance once enough equity is built.
Benefits of a Conventional Mortgage
- Competitive interest rates
- Lower long-term costs
- Flexible property options
- Faster underwriting process
- Ability to remove PMI
Conventional Loan Requirements
To qualify for a conventional loan, most lenders evaluate:
Credit score
Typically 620+ minimum
Debt-to-income ratio (DTI)
Employment and income verification
Down payment
As low as 3% for first-time buyers
Down Payment Options for Conventional Loans
One of the biggest advantages of a conventional loan is flexibility in down payment structure.
- 3% down for first-time homebuyers
- 5% down for repeat buyers
- 10–20% down to reduce mortgage insurance
- Private Mortgage Insurance (PMI) may apply if putting less than 20% down.
- PMI can be removed once you reach sufficient equity
Conventional Loan FAQs
Common questions about Conventional Loans
What credit score is required for a conventional loan?
Most lenders require a minimum credit score of 620, though higher scores may qualify for better interest rates.
How much is the down payment on a conventional loan?
Down payments can start as low as 3% for qualified first-time buyers.
Is PMI required on a conventional loan?
PMI is required if your down payment is less than 20%, but it can be removed once you reach sufficient equity.
Can I use a conventional loan for an investment property?
Yes. Conventional loans can be used for primary residences, second homes, and investment properties.
