Most popular
Conventional
Not backed by a government agency. Great rates and flexible terms for buyers with solid credit.
A conventional loan is a mortgage that isn’t insured or guaranteed by a government agency like the FHA, VA or USDA. It’s the most common type of home loan in the country. It can be used to buy or refinance a primary home, a second home or an investment property.
Who a conventional loan is a good fit for
- Buyers with good credit and steady income
- Buyers who want mortgage insurance that can be removed later
- Buyers of second homes or rental properties, which most government loans don’t allow
- Homeowners refinancing to a lower payment, a shorter term, or to take cash out
Down payment and mortgage insurance
You don’t need 20% down. Some first-time buyers can put down as little as 3%, and many buyers put down 5% to 10%.
With less than 20% down, the loan includes private mortgage insurance (PMI). Unlike FHA mortgage insurance, PMI doesn’t last forever. You can ask to have it removed once your balance reaches 80% of the home’s original value, and it drops off on its own at 78%. Paying down the loan or a rise in your home’s value can get you there sooner.
Fixed or adjustable rate
With a fixed-rate loan, your interest rate and principal-and-interest payment never change. Terms commonly run from 10 to 30 years. An adjustable-rate mortgage (ARM) starts with a fixed rate for a set period, often 5, 7 or 10 years, then adjusts with the market. We’ll help you weigh the two based on how long you plan to stay in the home.
Loan limits
Conventional loans have a maximum loan amount, called the conforming loan limit, which is updated every year. Loans above it are jumbo loans, which we also offer.
Why work with a broker
Conventional pricing varies quite a bit from one lender to the next. As an independent broker, we shop multiple lenders to find a rate and terms that fit your budget, not a one-size-fits-all offer.
Common questions
What credit score do I need?
Requirements vary by lender and by loan. Higher scores generally mean better pricing and lower PMI. We’ll review your credit with you and suggest any quick improvements before you apply.
Can family help with the down payment?
Yes. Gift funds from family can usually be used on a primary home, with a signed gift letter.
Conventional or FHA?
It depends on your credit and down payment. We’ll price both so you can see the monthly payment and long-term cost side by side.
Ready to see your options? Call us at 303-931-3239, or get prequalified online.