The Lowdown on Conventional Loans....
A conventional loan is a mortgage that private lenders offer without a government agency insuring it. Many conventional loans follow guidelines set by Fannie Mae and Freddie Mac, which is why you may hear them called “conforming” loans.
People often choose conventional loans because they can be flexible. Depending on your situation, you may be able to put down as little as 3% on a primary home, and you can use a conventional loan for a primary residence, a second home, or an investment property — all subject to underwriting approval.
We make the process simple. Start with our free Conventional Loan Qualifier. and we’ll help you compare your options in plain English, whether you’re a first-time buyer or you’ve owned homes before.
Conventional Loan Options
Conventional loans can be flexible. Common options include:
- Fixed-rate loans
- Adjustable-rate mortgages (ARMs)
- Low down payment programs for eligible buyers
- Primary residence, second home, and investment property financing
- Conforming and high-balance conforming loan amounts (limits vary by county and change each year)
Ask us which options fit your goals — we’ll walk you through it.
The Conventional Loan Process
Here’s how our home loan process works:
- Complete our simple Conventional Loan Qualifier
- Receive options based on your unique situation and goals
- Compare your loan choices with our team in plain English
- Choose the offer that best fits your needs and move forward
Conventional vs. FHA — A Quick Take
Not sure which loan is right for you? The short version:
- Conventional may work well if you have solid credit and want to avoid certain government loan fees, or you’re buying a second home or investment property.
- FHA may be easier to qualify for if your credit is still improving or you want a low down payment on a primary home.
The best way to know is to talk it through. We’ll compare both for your situation — no pressure.
Conventional Loan FAQs
A conventional loan is a mortgage offered by private lenders that is not insured by a government agency like the FHA or VA. Many follow Fannie Mae and Freddie Mac guidelines.
It depends on your situation. Some eligible buyers may put down as little as 3% on a primary home, while others choose to put down more. Your options are subject to underwriting.
No, you don’t need perfect credit. Conventional loans often work best for borrowers with a solid credit profile, but the only way to know your options is to apply and let us review your full picture.
If you put down less than 20%, you may pay private mortgage insurance (PMI). PMI can often be removed later once you build enough equity, subject to lender and investor guidelines.
Yes. Conventional loans can be used for primary homes, second homes, and investment properties, subject to underwriting approval.
Complete our free Conventional Loan Qualifier or call us at 909-833-3200. We’ll review your goals and help you compare your options in plain English.
Why a Conventional Loan?
A conventional loan can be a smart choice for buyers with steady income and a reasonable credit profile.
Reasons borrowers often pick this path:
- Down payment options that may start as low as 3% on a primary home
- May avoid an upfront mortgage insurance fee that some government loans charge
- Private mortgage insurance can often be removed later once you reach enough equity (subject to lender and investor guidelines)
- Can be used for primary homes, second homes, and investment properties
- Available with fixed-rate and adjustable-rate options
- Fewer property condition rules than some government programs in many cases
Every scenario is different. What you qualify for depends on your full financial picture and is subject to underwriting.
Conventional Loan Options
Conventional loans can be flexible. Common options include:
- Fixed-rate loans
- Adjustable-rate mortgages (ARMs)
- Low down payment programs for eligible buyers
- Primary residence, second home, and investment property financing
- Conforming and high-balance conforming loan amounts (limits vary by county and change each year)
Ask us which options fit your goals — we’ll walk you through it.