Conventional Loans
The most common mortgage — and often the best value.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They offer flexible down payments, competitive pricing, and cancellable mortgage insurance for buyers with strong credit.
Conventional at a glance
Why buyers choose conventional
- Down payments from 3% — with 3% HomeReady and Home Possible for income-eligible buyers.
- No monthly PMI at 80% LTV — and PMI can be cancelled when you reach 20% equity.
- Lower overall cost for strong-credit buyers compared to FHA in many scenarios.
- More property types — primary residences, second homes, and investment properties.
- Flexible loan limits including high-balance conforming in VA and MD high-cost counties.
Who conventional fits best
- Credit score 660+ (740+ gets the best pricing).
- Stable W-2 or two years of self-employed income.
- A reasonable DTI — typically under 50% with compensating factors.
- Buyers who plan to build equity and drop PMI early.
Not sure between Conventional and FHA?
We'll model both side by side with real numbers for your situation.
Program guidelines subject to change. Not a commitment to lend. NMLS ID# 205178.