Why Our Team Loves Conventional Loans
Conventional loans don't require upfront mortgage insurance, and you can cancel PMI once you reach 20% equity. They can align with – and even support – your financial goals, with rates and terms that you can tailor. Most home types qualify and if you have good credit, you could score a lower rate.
Conventional Loans At A Glance
Conventional loans are popular for a reason. They have a lot of flexibility on what type of property you can purchase, high loan limits, and no upfront mortgage insurance premiums.
Highlights
- Fixed or Adjustable Rates: For long-term stability or lower initial payments.
- Wide Range of Uses: Purchase, refinance, or cash-out refinance.
- Loan Limits: Up to $766,550 (as of 2024), with higher limits in high-cost areas.
- No Upfront Mortgage Insurance Premium: Unlike FHA loans.
Pros of Conventional Loans
- Flexible Loan Terms: Fixed and adjustable rates and options for term lengths.
- Property Eligibility: Primary residences, vacation homes, and rental properties.
- Perks For Good Credit: Good credit mean better interest rates.
- High Loan Limits: A great edge in expensive markets.
- Lower Overall Costs: No upfront mortgage insurance and PMI can be canceled once you reach 20% equity.
Conventional Loan Guidelines
- Down Payment: As low as 3% for first-time buyers.
- Private Mortgage Insurance (PMI): Required if down payment is less than 20%.
- Property: Single-family, condos, multi-family, second homes, investment properties.
Best For…
Homebuyers with good credit
Regular income earners
Buyers with a solid down payment
Real estate investors
Second home buyers
Homeowners ready to refinance
Questions? We'll Answer.
Let's answer the questions you're definitely not the first (or the last) to ask.
It depends on what type of mortgage you're trying to qualify for. FHA loans have lower credit score requirements, but you'll have to pay fees that other programs don't charge. Typically, a credit score of 620 or higher is required for a conventional loan, but a higher credit score can save you money by helping you qualify for a lower interest rate.
No, you don't have to have a 20% down payment to qualify for a conventional loan. First-time homebuyers can qualify with as little as 3% down.
Yes, if your down payment is under 20%. However, PMI can be removed once you reach 20% equity.
Conventional loans are available to repeat buyers, investors, and refinancers.
A lender will evaluate your credit, income, assets, and debt to determine eligibility.
You can purchase primary homes, vacation homes, and even investment properties.
Free Guides & Resources
Our favorite kind of buyer? A confident one. Brush up on your loan knowledge, get an accurate quote, and let's get to it.
