Conventional Loan
3%–20% Down Options
for Homebuyers
Conventional loans are a popular choice for buyers with stable income and solid credit—offering flexible down payments, competitive rates, and the ability to remove PMI once you build enough equity.
What Is a Conventional Loan?
A conventional loan is a mortgage that isn’t backed by a government agency. It’s one of the most common ways to buy a home and often offers strong pricing for borrowers with stable income and solid credit.
Conventional loans may require private mortgage insurance (PMI) if you put less than 20% down—but the big advantage is that PMI can typically be removed later once you build enough equity.
As a mortgage broker, we shop across multiple lenders so you’re not limited to just one option.
Check My Options →Why Conventional Loans Are So Popular
Conventional is often the “best all-around” option when you have decent credit and want flexibility—especially because PMI isn’t permanent.
Low Down Payment Options
Some buyers can qualify with as little as 3% down (guidelines vary by scenario).
PMI Can Be Removed
Unlike FHA, PMI is not designed to last forever—often reducing the long-term monthly cost.
Competitive Rates
Strong pricing for qualified borrowers, especially with higher credit and solid profiles.
Flexible Occupancy
Often works for primary homes, second homes, and some investment properties (terms vary).
Multiple Term Choices
Choose the term that fits your budget—like 15-year or 30-year fixed.
Refinance Friendly
Conventional loans can be a strong platform for future refinances when it makes sense.
Conventional Loan Requirements
These are general guidelines. The fastest way to know your options is to take the quick quiz and we’ll confirm down payment, PMI, payment, and best lender fit.
Take the Quiz →From Quiz to Keys in 4 Steps
We compare lenders, issue a strong pre-approval, and guide you through appraisal and underwriting.
Take the Quick Quiz
Tell us your goal and basics so we can match you to the right conventional options.
Get Pre-Approved
We review documents and issue a pre-approval so you can shop with confidence.
Appraisal & Underwriting
Once under contract, we order the appraisal and move the file through underwriting.
Close & Move In
We coordinate closing and walk you through final numbers so there are no surprises.
Conventional vs. Other Loan Programs
Conventional is often a strong fit when you have solid credit and want PMI that can be removed—plus flexible property options.
| Feature | FHA Loan | Conventional | VA Loan | USDA Loan |
|---|---|---|---|---|
| Min. Down Payment | 3.5% | 3–5% (qualified) | 0% (eligible) | 0% (qualified) |
| Mortgage Insurance | Yes (MIP) | ✓ PMI (removable) | ✓ None (no monthly MI) | Yes (annual fee) |
| Who Qualifies | Many buyers | Stronger credit profiles | Eligible veterans | Income/area limits |
| Occupancy | Primary only | Primary / second / some investment* | Primary only | Primary only |
| Best For | Lower credit / low down | Flexibility + PMI removal | Eligible veterans seeking low monthly | 0% down buyers who qualify |
Conventional Loan Pros and Cons
Conventional is a great all-around option—here’s the honest tradeoff.
✓ Pros
- Low down payment options for qualified buyers
- PMI can be removed once enough equity is built
- Competitive rates with strong credit profiles
- Flexible terms (15-year, 30-year, and more)
- Often works for second homes and some investments*
- Strong refinance flexibility later
✗ Cons
- Typically prefers stronger credit than FHA
- PMI required if putting less than 20% down
- Pricing can be sensitive to credit + down payment
- Investment property terms can be stricter*
- Appraisal and underwriting still apply like normal
- Some programs have stricter reserve requirements
What Our Borrowers Say
We’ve helped hundreds of families get into homes. Here’s what some of them had to say.
Conventional Loan FAQ
Most conventional questions come down to down payment, PMI, credit score, and choosing the best term.
Take the Quiz →Ready to Compare
15-Year vs 30-Year?
Take the quick quiz. No pressure—just clear answers on down payment, PMI, payment options, and your best next step.