Conventional loans
The standard path for qualified buyers, done well.
Conventional loans conform to Fannie Mae and Freddie Mac guidelines. They are not insured or guaranteed by the federal government. For borrowers with solid credit and a down payment, conventional loans typically offer the best combination of rate and flexibility.
Eligibility
- Credit score typically 620+ (better terms above 740)
- Down payment as low as 3% for first-time buyers, 5%+ otherwise
- Documented income and assets
- Acceptable debt-to-income ratio
Benefits
- Competitive rates for qualified borrowers.
- PMI can be removed once you reach 20% equity.
- Wide range of loan amounts and terms.
- Works for primary, second home, or investment properties.
How we help
Conventional is often the cleanest path. Where it is, we will say so. Where another program fits better, we will say that too.
If you are weighing FHA versus conventional with PMI, Paul will run both for you, side by side, including the long-tail cost of MIP versus removable PMI.
FAQ
How is conventional different from FHA?
Conventional is not government-insured. Credit and down payment requirements are stricter; in return, PMI is generally cheaper and removable once you reach 20% equity.
Can I avoid PMI?
Yes. Put 20% down, accept a slightly higher rate in exchange for lender-paid MI, or use a piggyback structure.
What about a second home or investment property?
Conventional financing supports both, with different rate adjustments and reserve requirements. Paul will walk you through what to expect.
Ready when you are. Better call Paul.