Conventional Loan

A conventional loan is a popular type of mortgage that’s not backed by the government unlike FHA or VA loans. Instead, it’s offered through private lenders like banks, credit unions, or mortgage companies, and is a great fit for buyers with solid credit and stable income.

Here are some key characteristics of conventional loans:

Credit Score Requirements

620 or higher

Down Payment

5% to 20% of the home's purchase price.

Terms and Interest Rates

Choose between fixed or adjustable rates with terms from 10 to 30 years. Your rate depends on your credit, income, and loan-to-value (LTV) ratio.

Highlights:

  • Flexible loan terms and limits

  • No upfront funding fee

  • PMI required if down payment is less than 20%

  • Stronger credit profile often needed

  • Can be used for a primary home, second home, or investment property

Every lender may have slightly different requirements, so it’s smart to speak with a mortgage expert to see what works best for your situation. Thinking about buying a home or refinancing? Let’s talk about whether a conventional loan is right for you.

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FHA