A conventional loan is a mortgage that is not backed by a government agency like the FHA or VA. It is the most common type of home loan and offers a lot of flexibility for buyers with solid credit.
Who conventional loans fit
They tend to work well for buyers with good credit and stable income. You can put as little as 3% down, and with 20% down you avoid private mortgage insurance entirely.
Key benefits
- Down payments as low as 3%
- No mortgage insurance with 20% down
- PMI can be removed once you reach 20% equity
- Flexible terms including 30, 20, 15, and 10 year options
What you generally need
Most conventional approvals look for a credit score of 620 or higher, documented and consistent income, and a manageable debt-to-income ratio.
If you have strong credit and can reach 20% down, a conventional loan is often the lowest total cost option. We can compare it side by side with FHA for you.