Conventional loan guide

Flexible, and built for strong credit.

Conventional loans work for primary homes, second homes, and investment properties, with mortgage insurance you can remove.

Overview

What is a conventional loan?

A conventional loan is not backed by a government agency. It follows guidelines set by Fannie Mae and Freddie Mac, and it's the most common type of mortgage.

It offers the most flexibility on property types, loan amounts, and down payment options, and it's a strong choice for borrowers with good credit who want to remove mortgage insurance down the road.

Down payment
As low as 3%
Credit score
620 minimum, 740+ for best pricing
PMI
Removable at 80% LTV
Property types
Primary, second home, investment
Benefits

Why choose conventional?

Removable PMI

Unlike FHA, PMI comes off once you reach 20% equity.

Property flexibility

Finance primary homes, vacation homes, and rentals.

No upfront fee

No upfront mortgage insurance or funding fee.

Term options

10, 15, 20, 25, or 30 years, fixed or adjustable.

Low down payment

You don't need 20% down.

3% down

Conventional 97

3% down for first-time buyers purchasing a single-unit primary home.

Fannie Mae

HomeReady

Fannie Mae's program for low to moderate income borrowers, with reduced PMI.

Freddie Mac

Home Possible

Freddie Mac's program with reduced insurance costs and flexible funding sources.

PMI explained

How to remove PMI.

PMI is required on conventional loans with less than 20% down. The good news is it doesn't last forever.

  • Request removal at 80% of the original value
  • Automatic cancellation at 78%
  • A new appraisal may show 20% equity sooner
  • Refinance once you have 20% or more equity
Ready when you are

Ready to explore conventional financing?

First home, second property, or a rental, let's find the right fit.