Conventional Loans

How this loan works

Conventional loans are mortgages that aren't backed by a government agency — they follow guidelines set by Fannie Mae and Freddie Mac. They're the most common loan type in America for a reason: strong credit and stable income are rewarded with competitive pricing, and the structure flexes across primary homes, second homes, and investment properties.

Contrary to the old rule of thumb, conventional loans don't require 20% down. Qualified buyers can put down as little as 3%. Below 20%, private mortgage insurance (PMI) applies — but unlike FHA mortgage insurance, PMI drops off once you build enough equity, which can make conventional the cheaper long-run choice for many buyers.

Program highlights

As little as 3% down

Qualified first-time buyers can access 3%-down conventional programs; 5% down is widely available.

PMI that cancels

Private mortgage insurance can be removed once you reach sufficient equity — it isn't forever.

All property types

Primary residences, second homes, and investment properties are all on the table.

Flexible terms

Fixed and adjustable structures across a range of term lengths, matched to how long you plan to keep the home and the loan.

The path, step by step

Pre-approval

Income, assets, and credit reviewed up front so your budget is real.

Structure the loan

Down payment, term, and rate structure tuned to your plans — not a one-size default.

Underwriting

Our production team builds the file right the first time and keeps it moving.

Clear to close

Final figures verified, documents signed, keys delivered.

Common questions

Do I need 20% down for a conventional loan?

No. That threshold only determines whether PMI applies. Many buyers put 3–10% down, pay PMI temporarily, and cancel it as equity builds.

Conventional vs. FHA — which is better?

It depends on your credit profile and down payment. Stronger credit generally favors conventional; more flexible credit situations often favor FHA. We price both and show you the comparison rather than guessing.

Can I use a conventional loan for a rental property?

Yes — conventional financing covers investment properties, generally with larger down payment requirements than a primary residence. For rental-income-based qualifying, ask us about DSCR options too.