Whether you're a first-time buyer or an investor, conventional loans offer low rates, flexible terms, and down payment options as low as 3%.
Conventional loans are one of the most popular mortgage options for homebuyers who meet standard credit and income requirements. Learn more about eligibility from the Fannie Mae Conventional Loan Guide.
Why Go Conventional? More Flexibility, Less Restrictions
Lower Down Payment Options
As low as 3% for qualified buyers
No Private Mortgage Insurance (PMI) with 20% Down
Avoid PMI entirely with a 20% down payment
More Property Flexibility
Eligible for primary homes, second homes, and investment properties
Fewer Restrictions
Higher loan limits than FHA/USDA with no location restrictions
Conventional loans provide more options for buyers who qualify, with higher loan limits, flexible terms, and no government restrictions.
Key Conventional Loan Features & Eligibility
Conventional loans provide flexible financing options for homebuyers with strong credit and various down payment options. Unlike government-backed loans, conventional loans offer more flexibility in property types, loan limits, and terms. Borrowers with a credit score of 620 or higher may qualify for competitive interest rates, and those who put at least 20% down can avoid private mortgage insurance (PMI). These loans are a great choice for primary residences, second homes, and investment properties.
For more details on qualification criteria, check out the Freddie Mac Conventional Loan Overview.
🏡 Key Conventional Loan Features & Eligibility
✅ Minimum Credit Score: Typically 620+
✅ Available for Primary, Second Homes, and Investment Properties
✅ Loan Limits Vary by County (Higher in high-cost areas)
✅ Fixed-Rate & Adjustable-Rate Options
Conventional loans must meet loan limits set by the Federal Housing Finance Agency (FHFA). You can check the latest Conventional Loan Limits to see how they apply in your area.
Who Qualifies for a Conventional Loan?
- ✅ Borrowers with Stronger Credit – Minimum 620+ credit score recommended for better rates
- ✅ First-time & Repeat Homebuyers – Available for primary, second homes, and investment properties
- ✅ Flexible Income & Employment Requirements – No strict income limits, but stable income and assets improve approval chances
- ✅ Down Payment as Low as 3% – Higher down payments help avoid Private Mortgage Insurance (PMI)
Conventional Loan Process (Step-by-Step Guide)
🏡 Pre-Approval
✔️ Check your eligibility and get pre-approved for a competitive rate
🔎 Find a Home
✔️ Work with a realtor to find a property that meets your needs and loan requirements
📝 Submit Your Application
✔️ Provide required documents, including income, assets, and credit details
🔑 Close on Your Home!
✔️ Finalize your loan, sign closing documents, and get the keys to your new home 🎉
Conventional Loan FAQs
Q1: What is the minimum credit score needed for a Conventional loan?
A: Conventional loans typically require a minimum credit score of 620.However, a higher score (typically 700+) can help you qualify for better interest rates and lower mortgage insurance costs.
Q2: Do I need a 20% down payment for a Conventional loan?
A: No, you can get a Conventional loan with as little as 3% down if you’re a first-time homebuyer. However, a 20% down payment allows you to avoid Private Mortgage Insurance (PMI).
Q3: How long does the Conventional loan process take?
A: The process typically takes 30-45 days, but timing may vary based on credit, income verification, and property appraisal.
🏡 Ready to Become a Homeowner? Let’s Get Started!
📢 Take the next step—get pre-approved today and move closer to homeownership!
Thinking about refinancing? Check out our Refinance Loan options to see if a Conventional Loan is right for you.