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 all 7 states we serve.
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. Mortgage Marketplace LLC (NMLS #2367229) compares conventional programs across multiple lenders so you see real options, not just one bank’s rate.
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, PMI & LOAN OPTIONS WORK
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.
Is a conventional loan right for you?
It depends on whether it gives you better overall numbers than FHA, VA, USDA, jumbo, or other options. We compare across multiple lenders so you see the real numbers before you decide.
COMMON QUESTIONS
FREQUENTLY ASKED QUESTIONS
What is the minimum down payment for a conventional loan?
Some eligible conventional loan programs allow as little as 3% down for qualifying first-time buyers. Most repeat buyers put down 5% or more. Putting down 20% removes the requirement for private mortgage insurance, but it is not required to qualify.
Do conventional loans require private mortgage insurance?
PMI applies when your down payment is below 20%. It protects the lender, not the borrower, and is added to your monthly payment until removed.
Can private mortgage insurance be removed later?
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.
What is the difference between a conventional loan and an FHA loan?
A conventional loan is not insured by the government and typically requires a credit score of 620 or higher. FHA loans are government-backed and allow scores as low as 580, but FHA mortgage insurance often lasts for the life of the loan.