With 20% down, you can secure a conventional loan without having to pay mortgage insurance.

Conventional Loans

Conventional loans are a popular mortgage option that typically costs less than other comparable loans. It may be harder to qualify for a conventional loan due to stricter credit and income requirements. However, if you can qualify for this type of loan, there are some significant advantages. The most beneficial being that no mortgage insurance is required for borrowers that put down at least 20%. This is one of the main reasons buyers decide to secure a conventional loan. 

Conforming Conventional Loan: Conventional loans are backed by Fannie Mae and Freddie Mac, government-sponsored enterprises that set loan limits. Loan amounts that are equal to or less than the maximum loan limit are considered “conforming”. 

Non-Conforming Conventional Loans: The most common type of non-conforming loan can also be referred to as a “Jumbo” loan. Jumbo loans are necessary for conventional borrowers that need to borrower an amount that exceeds the maximum loan limit. If you’re trying to purchase a more expensive property, a jumbo loan may be the right program for you. 

Conventional Loan Features

Here's why an Conventional Loan may be right for you.
  • No mortgage insurance - borrower must put down at least 20%
  • For borrowers with good credit and money for a down payment
  • Can cost less than an FHA Loan
  • Fixed or adjustable-rates available
  • Can be used for primary residence, vacation homes, investment properties

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Conventional Loan FAQ's

Find answers to some of the most common questions about conventional loans.

With a conventional loan, mortgage insurance is not required if you put down 20% or more. This is one of the most attractive features when comparing conventional to an FHA loan. However, if cannot afford to put 20% down, that’s ok too, you will just have to pay private mortgage insurance (PMI) until you have 20% equity in the home. 

Almost any type of property can qualify for a conventional loan, including single-family homes, condominiums, co-ops, townhouses, and 2-4 unit properties. 

Yes, actually it is very rare to get a government-backed loan on a second property. You will have to go the conventional or non-qm route.

Your credit score will need to be at least a 620 or higher. The higher your credit score, the better rate we can offer you. 

The loan limits for conventional loans change each year. As of January 2020, the conforming conventional loan limit is $510,400 in most places and $765,600 in areas with high costs. If you are looking to get a loan that exceeds the conforming limit in your area, then you will need to look into a Jumbo loan.

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