Loan program
Conventional & Fixed-Rate Loans
The most common mortgage in the country for a reason: predictable payments, no government backing required, and — for many buyers — a lower overall cost than government-backed alternatives once credit and down payment line up.
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What makes a loan "conventional"
A conventional loan isn't insured or guaranteed by a government agency — it follows underwriting guidelines set by Fannie Mae and Freddie Mac instead. That generally means a slightly higher bar for credit and income documentation, in exchange for more flexibility on property type and, often, lower long-term costs than an FHA loan.
Fixed-rate vs. adjustable
Most conventional loans are fixed-rate: your interest rate and principal-and-interest payment never change, for the life of a 15, 20, or 30-year term. That predictability is why it's the default choice for buyers planning to stay put. If you're not, an adjustable-rate structure might make more sense.
Who this fits well
- Buyers with steady, documentable income and credit typically in the high-600s or above
- Anyone who can put down at least 3–5%, or 20% to avoid mortgage insurance entirely
- Buyers purchasing a primary residence, second home, or investment property — conventional financing covers all three
- Homeowners refinancing out of FHA mortgage insurance once they've built enough equity
Mortgage insurance, and how to drop it
Put down less than 20% and you'll pay private mortgage insurance (PMI) — but unlike FHA's MIP, conventional PMI cancels automatically once you reach 22% equity, and you can request cancellation yourself at 20%. That's a meaningful long-term difference between the two programs.
See if conventional financing fits your numbers.
A quick conversation will tell you where you stand.