Conventional Loans
Traditional financing with competitive rates, flexible terms, and down payments as low as 3%.
Conventional loans are the most common type of mortgage in America, and for good reason. They offer competitive rates, flexible terms (15, 20, or 30 years), and options for down payments as low as 3%. Unlike government-backed loans, conventional loans are not insured by the FHA, VA, or USDA, which means they typically require stronger credit profiles but offer more flexibility in property types and loan amounts.
As an independent broker, Sarah compares conventional loan products across 30+ lenders to find the lowest rate and best terms for your specific situation. Banks can only offer their own products. Sarah shops the entire wholesale market.
Qualification Requirements
Credit Score
620+
Best rates at 740+
Down Payment
3-20%
20% eliminates PMI
DTI Ratio
≤45%
Total debt-to-income
Employment
2 Years
Stable income history
Frequently Asked Questions
Most conventional loans require a minimum credit score of 620. However, the best rates are typically available to borrowers with scores of 740 or higher. Sarah works with multiple lenders and can find competitive options across the credit spectrum.
As little as 3% for first-time buyers through programs like Fannie Mae HomeReady or Freddie Mac Home Possible. A 5% down payment is standard for most conventional loans. Putting 20% down eliminates the need for PMI.
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender if you default. PMI can be removed once you reach 20% equity in your home, either through payments or appreciation. Sarah can help you understand your PMI options and timeline for removal.
Conforming loans fall within the loan limits set by Fannie Mae and Freddie Mac (currently $832,750 in most areas). Loans above this amount are 'jumbo' loans and typically have different qualification requirements and rates.
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Sarah will compare conventional loan options across 30+ lenders and deliver your best rate within 24 hours.
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