Understanding Conventional Loans
Your comprehensive guide to traditional mortgage financing
What Are Conventional Loans?
Conventional loans are traditional mortgage loans that aren't backed by government agencies like FHA, VA, or USDA. These loans follow guidelines set by Fannie Mae and Freddie Mac, offering flexible terms and competitive rates for qualified borrowers.
Key Features:
- Available for primary residences, second homes, and investment properties
- Down payments as low as 3% for qualified first-time homebuyers
- Loan limits up to $726,200 in most areas (2023)
- Flexible repayment terms: 15, 20, or 30 years
- Option to remove PMI once 20% equity is reached
Interest Rates & Terms:
- Fixed-rate mortgages with stable monthly payments
- Adjustable-rate options for flexible terms
- Competitive rates based on credit score and down payment
- No upfront mortgage insurance premium
Did You Know?
Conventional loans often offer lower monthly payments compared to FHA loans once you reach 20% equity, as they don't require permanent mortgage insurance.
90%
of Home Loans
Are conventional mortgages
3%
Min Down Payment
For qualified buyers
30-45
Days Average
To close your loan
620+
Credit Score
Minimum requirement
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Key Benefits
- Competitive RatesAccess industry-leading interest rates
- Flexible TermsChoose from various loan terms
- Expert SupportDedicated loan officer assistance