Conventional Loans
Traditional mortgage solutions with competitive rates and flexible terms for qualified borrowers.
What is a Conventional Loan?
A conventional loan is a type of mortgage that is not insured or guaranteed by the federal government. These loans are offered by private lenders such as banks, credit unions, and mortgage companies, and they typically conform to the standards set by Fannie Mae and Freddie Mac.
Conventional loans are one of the most popular mortgage options for homebuyers who have good credit, stable income, and a reasonable down payment. They offer competitive interest rates and can be used to purchase primary residences, second homes, or investment properties.
Types of Conventional Loans
Conforming Loans
Conforming loans meet the standards set by Fannie Mae and Freddie Mac, including loan limits, borrower qualifications, and property requirements. For 2025, the conforming loan limit is $766,550 for most areas (higher in expensive markets).
Non-Conforming Loans
Non-conforming loans don't meet Fannie Mae or Freddie Mac standards. These include jumbo loans (exceeding conforming limits) and loans that don't meet standard underwriting criteria.
Benefits of Conventional Loans
- Competitive interest rates for borrowers with good credit
- Flexible down payment options (as low as 3% for qualified buyers)
- No upfront mortgage insurance premium
- PMI can be removed once you reach 20% equity
- Can be used for primary homes, second homes, or investment properties
- Higher loan limits than government-backed loans in most areas
- More flexibility in property types and conditions
Requirements
Minimum 620 (higher scores get better rates)
As low as 3% (PMI required if less than 20%)
Generally 43% or lower
2 years of stable employment
Is a Conventional Loan Right for You?
Conventional loans are ideal if you have:
- Good to excellent credit (typically 680+ for best rates)
- Stable employment and income
- Ability to make at least a 3-5% down payment
- Low debt-to-income ratio
- Plans to purchase a primary home, second home, or investment property
How to Apply
Getting started with a conventional loan is easy. Our experienced loan officers will guide you through the process:
- Pre-Qualification: Quick assessment of your buying power
- Pre-Approval: Full application with documentation review
- Home Shopping: Search for your perfect home with confidence
- Final Approval: Complete underwriting and property appraisal
- Closing: Sign documents and get your keys!
Ready to Get Started?
Contact us today for a free consultation and personalized rate quote.