Why Conventional?
Conventional loans can be a strong fit for buyers with steady income and solid credit who want flexible terms and a clear path to long term homeownership.
Low Down Payment Options
As low as 3 percent down for qualified first time homebuyers.
No Upfront Mortgage Insurance
Unlike FHA, there is no upfront mortgage insurance fee. PMI may apply when putting less than 20 percent down.
Removable PMI
Private mortgage insurance can typically be removed when equity reaches guidelines.
Property Flexibility
Financing available for primary residence purchases, and some second home scenarios depending on guidelines.
Common Guidelines
- Minimum credit profile depends on program and loan structure
- Down payment varies by occupancy and loan amount
- Debt-to-income ratios must meet conventional underwriting limits
- Property appraisal required to support value
- Reserve requirements may apply in some scenarios
Who is conventional usually best for?
First-Time Buyers with Strong Credit
Great option when you want low down payment and long-term flexibility.
Move-Up Buyers
Ideal for buyers transitioning into larger homes with better pricing options.
Cost-Conscious Borrowers
Often a strong long term fit for qualified buyers who want flexibility and a path to remove PMI later.