Conventional Loans
Conventional Loans
Backed by private lenders and the agencies (Fannie Mae / Freddie Mac), conventional loans reward strong credit with competitive rates - and start as low as 3% down for qualified first-time buyers.
Is a conventional loan right for you?
- As little as 3% down on Conventional 97 for qualified first-time buyers.
- No upfront mortgage insurance, and PMI drops off automatically as you build equity.
- Competitive rates for credit scores of 620+ (best pricing at 740+).
- Flexible for primary homes, second homes, and investment properties.
- Higher loan limits than FHA in many areas; go jumbo above the conforming limit.
Conventional vs FHA
With strong credit and some down payment, conventional often beats FHA on total cost because PMI can be removed and is risk-based. With lower credit, FHA may price better. We compare both for you - try the payment calculator.