A longer fixed-rate term with a lower required monthly payment than shorter fixed-rate options.
CONVENTIONAL HOME LOANS
Conventional Loans
Flexible financing for buying or refinancing, with your choice of down payment and loan term. A strong alternative to government-backed loans, available across our seven licensed states.
Independent Brokerage, Many Lenders
Licensed in 7 States
NMLS #2367229
Decades of Combined Experience
CONVENTIONAL LOAN
What Is a Conventional Loan and How Does It Work?
A conventional loan is a mortgage that is not insured or guaranteed by a government loan program such as FHA, VA, or USDA. Many conventional loans are conforming loans, meaning they follow guidelines set by Fannie Mae and Freddie Mac for mortgages they purchase. Other conventional loans are non-conforming, depending on the loan amount and borrower situation.
Conventional loans can be used to buy a home or refinance an existing mortgage. The loan options available to you depend on factors such as your credit profile, income, debts, assets, property type, occupancy, and overall loan structure. As an independent mortgage brokerage, we compare conventional programs across multiple lenders so you can review the available options before deciding.
Buy or Refinance
Use a conventional loan to purchase a home or refinance your current mortgage.
Not Government-Insured
Conventional loans are not backed by a government agency.
Options Depend on You
Your credit profile, income, debts, assets, and loan structure all matter.
CONVENTIONAL LOAN ADVANTAGES
What Are the Benefits of a Conventional Loan?
Flexible Down Payment Options
Some eligible conventional loans allow as little as 3% down for qualifying borrowers and transactions.
Multiple Loan Structures
Choose from fixed-rate and adjustable-rate mortgages based on your budget, timeline, and goals.
Mortgage Insurance May Be Temporary
When PMI applies, it may be possible to remove it later once certain requirements are met.
Broader Property Options
May be used for primary residences, second homes, and investment properties. Eligibility rules apply.
DOWN PAYMENT AND PMI
How Much Down Payment Do I Need for a Conventional Loan?
Conventional loans allow down payments as low as 3% for qualifying first-time buyers and typically 5% for repeat buyers. Putting down 20% removes the requirement for private mortgage insurance, but it is not required to qualify.
Down Payment
Conventional loans typically require 3–5% down for qualifying buyers, compared to 3.5% for FHA. Your exact minimum depends on credit score, loan type, and occupancy.
Private Mortgage Insurance (PMI)
PMI applies when your down payment is below 20%. It protects the lender, not you, and is added to your monthly payment until removed.
PMI May Be Removed
Most conventional loans allow PMI to be canceled once you reach 20–22% equity. FHA loans, by comparison, often require insurance for the life of the loan.
CONVENTIONAL LOAN TYPES
What Conventional Loan Options Are Available?
Conventional financing is available with different term and rate structures. Explore the options below to see how each one works and which may fit your financing goals.
15-Year Fixed Mortgage
A shorter fixed-rate term for borrowers who want to pay off their home faster and reduce total interest.
Adjustable-Rate Mortgage
A mortgage with an initial fixed period followed by a rate that adjusts based on the loan terms.
Jumbo Loans
Financing for loan amounts above the conforming loan limit, with qualification requirements that vary by lender.
MAKING THE DECISION
Is a Conventional Loan Right for You?
A conventional loan may be a strong fit if you have a solid credit profile and want flexible options for your down payment, loan term, and property type. Conventional financing can be used for both home purchases and refinances.
The right choice depends on your credit, income, available funds, property, and overall goals. We compare conventional options across multiple lenders and weigh them against FHA, VA, USDA, jumbo, and other programs so you can choose the financing that fits your situation.
THE BROKER ADVANTAGE
One Broker. Many Conventional Loan Options.
Conventional loan guidelines and pricing vary by lender, including how credit, down payment, property type, occupancy, loan amount, and mortgage insurance are evaluated.
We are independent. We compare eligible conventional programs across our lender network and help you understand how qualification requirements, loan structure, pricing, fees, and mortgage insurance differ so you can see which options fit your situation.
CONVENTIONAL LOAN FAQ
Questions Buyers Ask About Conventional Loans
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency. Most conform to guidelines set by Fannie Mae and Freddie Mac, which is why they are often called conforming loans. They are the most common mortgage in the country and work for purchases, refinances, second homes, and investment properties.
What credit score do I need for a conventional loan?
Conventional loans generally start around a 620 score, and pricing improves as the score rises. Credit is one factor alongside income stability, debt load, assets, and the property itself. Because lenders add their own overlays above program minimums, comparing across multiple lenders often changes what you qualify for.
How much down payment does a conventional loan require?
As little as 3 percent for eligible buyers on certain programs, though 5 percent is more common. Twenty percent avoids mortgage insurance but is not required. The right number depends on your goals, your timeline, and what you qualify for, and waiting years to reach 20 percent can cost more than the insurance would have.
When does conventional mortgage insurance come off?
Unlike most FHA loans, conventional mortgage insurance is not permanent. It can typically be removed once you have built sufficient equity in the property, either automatically or on request depending on the circumstances. That difference is one of the main reasons buyers with adequate credit choose conventional over FHA.
What is the conventional loan limit?
The conforming limit is $832,750 in most markets. Loans above that amount are jumbo loans, which follow different guidelines and pricing. High-cost counties carry higher limits, so the applicable figure depends on where the property sits. We confirm the limit for your specific county before you make an offer.
Can I use a conventional loan for an investment property?
Yes. Conventional loans allow investment properties with larger down payments and somewhat stricter qualifying. If your personal tax returns do not support the debt, a DSCR loan that qualifies on the property’s rental income instead may be a better fit. We will compare both rather than assuming one.
Is a conventional loan better than FHA?
It depends on your file. Conventional usually wins on mortgage insurance, because it can be removed. FHA usually wins on credit flexibility and minimum down payment. On a strong credit profile conventional is often cheaper over the life of the loan. On a thinner file FHA may be the only workable path. We run both.
How long does it take to close a conventional loan?
Closing takes 21 to 30 days in most cases once you have an accepted offer and your documents are in. Pre-approval usually takes one to two business days. We are licensed in Oregon, California, Washington, Idaho, Texas, Florida, and Montana, with offices in Salem and Eugene, Oregon.
Ready to Compare Conventional Loan Options?
Tell us about your financing goals and we’ll review conventional options across our lender network so you can compare the available structure, pricing, and next steps.