Loan programs

Conventional Loans

A Conventional Loan is a mortgage that isn’t backed by the government. It’s the most common loan type and works best for buyers with decent credit, steady income, and a small-to-moderate down payment.

Why People Choose a Conventional Loan

Straightforward + flexible.
Conventional loans usually offer:

  • Competitive interest rates
  • Lower monthly mortgage insurance (and it eventually falls off)
  • More loan options and loan terms
  • Higher loan limits than FHA
Down Payment

You can buy a home with as little as 3% down.
Most buyers put 3–5% down with a conventional loan.

Good tips to know:

  • If you put 20% down, there is no mortgage insurance
  • If you put less than 20%, mortgage insurance stays only until you hit 20% equity (not for the life of the loan like FHA)
Basic Requirements

Conventional loans generally look for:

  • 620+ credit score
  • Stable job history
  • Reasonable debt-to-income ratio
  • A property that meets basic condition standards

If your credit is higher, you’ll usually get a better interest rate.

Refinancing FHA → Conventional

Once you’ve built 20% equity, you can refinance out of an FHA loan into a Conventional loan to remove FHA’s lifetime mortgage insurance.