FOR HOME BUYERS
Conventional Loan: Stability & Long-Term Savings
Conventional loans are the most common mortgage type in the U.S., offering a variety of terms and options for homebuyers who meet typical credit and income standards. With competitive rates, flexible down payment choices, and long-term savings, conventional mortgages are a great fit for buyers seeking stability and equity growth.
A home loan that makes home more affordable.
Flexible Down Payments
Options as low as 3% down for first-time buyers.
Lower Mortgage Insurance Costs
PMI can be canceled once you reach 20% equity.
Competitive Rates
Ideal for borrowers with strong credit.
Vertasile Use
Can be used for primary residences, second homes, or investment properties.
Guidelines for this Loan
If your details are close to these guidelines, we encourage you to apply or contact us. Even if you don’t qualify for an adjustable-rate mortgage, we could have other options for you.
Closing Costs
In addition to your down payment, you’ll need enough funds to cover closing costs.
Estimate and Explore
Calculators are a great way to learn and see what’s possible.
Down Payment Calculator
Learn how much cash you need to buy the home in your mind.
Get More In-Depth Details
Articles that give you more information about this loan and explain how mortgages work.
Frequently Asked Questions
Answers to questions about this loan we heard from people like you during research.
Whats the difference between a Conventional and VA loan
FHA loans are government-backed with easier qualifications, but they require mortgage insurance for the life of the loan. Conventional loans offer more flexibility with insurance and better long-term cost savings for well-qualified borrowers.
When Does PMI Go Away?
Private mortgage insurance (PMI) is automatically canceled once you reach 78% loan-to-value (LTV) or can be requested once you reach 80% LTV based on home appreciation or payments.
Can I Use Gift Funds with a Conventional Loan?
Yes. You can use gift funds for your down payment and closing costs, though restrictions may apply depending on the property type and loan structure.
Are There Income Limits?
Not for standard conventional loans. However, some low down payment programs like HomeReady® and Home Possible® have income limits.
Can I Use This Loan for a Second Home?
Absolutely. Conventional loans are one of the best options for vacation or investment properties.
