Conventional Loans: The Gold Standard. If You Qualify.

What is a conventional loan?

A conventional loan is a mortgage that is not backed by the federal government (unlike FHA or VA). It is offered by private lenders and follows guidelines set by Fannie Mae and Freddie Mac. It usually offers the best rates if you have strong credit and a solid down payment.

What are the requirements?

Lenders look at credit score (often 620+), income, debt-to-income ratio, and down payment. The stronger your profile, the better your rate. We shop 100+ lenders so you see the best options for your situation.

How much do I need for a down payment?

You can put as little as 3% down on some conventional programs (first-time buyer programs exist). More down usually means a better rate and no PMI once you reach 20% equity. We will show you the tradeoffs.

What about PMI?

If you put less than 20% down, you typically pay private mortgage insurance (PMI). It protects the lender. Once you reach 20% equity you can often remove it. We explain how much it costs and when you can drop it.

Fixed vs ARM: which should I choose?

Fixed-rate loans lock in your rate for the full term (15 or 30 years). ARMs start with a lower rate for a set period, then adjust. Most buyers choose fixed for predictability. We lay out both so you can decide.

When does conventional beat FHA?

If you have good credit (around 680+) and at least 5% down, conventional often has a better rate and no lifetime mortgage insurance. We run both and show you the real numbers.

FAQ

What is a conforming loan?

A conforming loan meets Fannie Mae and Freddie Mac size and guideline limits. Most conventional loans are conforming. Jumbo loans are for amounts above that limit.