Conventional loans win on flexibility, but two advantages come up in almost every conversation we have: mortgage insurance you can actually get rid of, and the freedom to finance more than just your primary home.
With a conventional loan, once you reach enough equity in your home, you can request to cancel private mortgage insurance, potentially lowering your monthly payment over time. That’s a key advantage over some government-backed loans.
Conventional loans aren’t limited to primary residences. They can be used to finance second homes and investment properties too, making them a versatile choice for buyers with a range of goals beyond a first home.
If you have solid credit and some savings for a down payment, a conventional loan often offers the most flexibility and long-term value. You can put down as little as 3% in some cases, cancel mortgage insurance once you build enough equity, and use the loan across a variety of property types. For many buyers, it’s the option that best fits both their finances and their future plans.
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Conventional lending has the widest menu of options, which means the guidance matters more, not less. We’ll help you pick the down payment, term, and structure that fit your actual plans, whether this is your first house, your vacation place, or door number three in a rental portfolio.
Want to see your conventional options? Fill out our short application and a banker will lay out terms, down payment scenarios, and payments you can compare line by line.
DISCLAIMER:
This is not a commitment to lend or extend credit. All loans are subject to credit approval. Information is subject to change without notice. Other restrictions may apply. VA loan benefits are subject to eligibility requirements determined by the U.S. Department of Veterans Affairs.
Down payments on conventional loans can start as low as 3% for some qualified buyers, though putting down 20% lets you avoid private mortgage insurance entirely. The right amount depends on your goals and budget. Our team can help you weigh the trade-offs and find the down payment that works best for you.
Most conventional programs start at a 620 credit score, though the strongest pricing generally shows up around 740 and above. Your down payment and debt-to-income ratio matter just as much as the number itself. If you’re borderline, we’ll tell you exactly where you stand and what would move the needle.
PMI applies to conventional loans with less than 20% down, and unlike FHA’s version it is built to come off. You can ask your servicer to cancel it on the scheduled date your balance reaches 80% of the home’s original value, provided you are current and the property has held its value. If you do not ask, your servicer has to end it automatically once the balance is scheduled to hit 78% of original value, as long as you are current on payments. We will map out when that date should land for you.
Yes. One of the advantages of conventional loans is their flexibility, they can be used for primary residences, second homes, and investment properties. The terms and down payment requirements vary depending on how you’ll use the property. Our team can help you understand what to expect for your specific goals.
Neither is universally better, it depends on your situation. Conventional loans often work well for buyers with strong credit who want to avoid long-term mortgage insurance, while FHA loans can be a better fit for those with lower credit or a smaller down payment. We’re happy to compare both with you so you can make the right choice.
