Top Mortgage Lenders Since 1996

Conventional Loans: Buy Your First Home With Just 3% Down

Our conventional loans offer flexible terms, low down payment options, and long-term cost savings, especially if you have strong credit.

  • Down payment as low as 3%

  • Shop Multiple Lenders

  • No Upfront Funding fee

  • PMI drops at 20% equity
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In Funded Home Loans

What is a Conventional Loan?

A conventional loan is the most common mortgage type in the U.S.


Unlike government-backed loans like FHA or VA, it’s funded by private lenders and follows standards set by Fannie Mae and Freddie Mac.

Who is it for?

  • Borrowers with credit scores of 680+ (ideally 720 or higher).


  • Homebuyers with at least 3%–20% down payment saved.

  • People who want to avoid government loan restrictions (like FHA’s mortgage insurance rules).


  • Buyers who want lower monthly costs long-term (once PMI is removed at 20% equity).

  • Works for single-family homes, condos, second homes, or investment properties


Conventional Loan Options

Buy your first home with confidence, save on costs, and avoid paying more than you should.


Here are the flexible loan options we offer:

  • Fixed-Rate Mortgage

    How It Works: Your interest rate stays the same for the entire loan term, giving you predictable monthly payments.


    Loan Terms: Common terms include 15, 20, or 30 years. Shorter terms often come with lower rates but higher monthly payments.


    Best For:


    • Homebuyers who plan to stay in their home long-term.

    • Borrowers who value payment stability and want to lock in today’s rates.

    Why Choose ACM: We shop across lenders to find you the most competitive fixed-rate, so you can build equity with confidence.

  • Adjustable-Rate Mortgages (ARM)

    How It Works: ARMs start with a lower introductory rate for a set period (e.g., 5/1 ARM = fixed for 5 years, then adjusts annually). 


    After that, your rate adjusts based on market conditions.


    Example: A 5/1 ARM may offer a much lower initial payment compared to a 30-year fixed loan.


    Best For:


    • Buyers who plan to sell or refinance before the adjustment period.

    • Borrowers who want to take advantage of lower upfront costs.

    Why Choose ACM: We structure ARMs strategically so you save in the early years while planning ahead for future refinancing if needed.

  • Conforming Conventional Loans

    How It Works: These loans follow Fannie Mae and Freddie Mac guidelines and stay within set loan limits. 


    For 2025, Fannie Mae limits are: $806,500 for a one-unit property in most of the U.S. and $1,209,750 in high-cost areas. 


    Best For:


    • First-time and repeat buyers purchasing homes within the standard loan limits.

    • Borrowers seeking competitive interest rates and streamlined approval.

    Why Choose ACM: We simplify the process of meeting Fannie/Freddie requirements and maximize your buying power with flexible down payment options (as low as 3%).

  • Non-Conforming / Jumbo Loans

    How It Works: Jumbo loans exceed conforming loan limits and aren’t purchased by Fannie or Freddie. 


    They’re ideal for higher-priced homes.


    Loan Amounts: Typically above $766,550 (varies by county).


    Best For:


    • Buyers in high-demand markets like Austin, Dallas, or Houston, where home prices often exceed the conforming cap.

    • Borrowers with strong credit (700+) and healthy income documentation.

    Why Choose ACM: Our lender network gives you access to competitive jumbo rates and faster in-house underwriting compared to big banks, so you can close on high-value homes smoothly.

Conventional Loan Requirements

Conventional loans have stricter requirements compared to government-backed options, but they often reward qualified borrowers with lower long-term costs and more flexibility.


Here’s what you need to qualify for a conventional home loan:

Credit Score

  • Minimum of 620 to qualify, but borrowers with scores of 680+  typically secure better interest rates  and terms.


Debt-to-Income (DTI) Ratio


  • Lenders prefer a DTI of 43% or lower,  which means your monthly debts  (including your new mortgage) should not exceed 43%  of your gross monthly income.

    At ACM, we can work with         DTIs  upto 51% for first time home buyers.


Down Payment

  • Conventional loans require as little as 3% down for first-time buyers, though 5–20% is more common.

    A         down payment  of 20% eliminates the need for Private Mortgage Insurance (PMI).


Documentation

  • Lenders will ask for proof of income, tax returns, bank statements,  and employment history to verify financial stability.
Requirement Conventional Loan FHA Loan VA Loan USDA Loan
Credit Score 620+ (better rates at 680+) 580+ with 3.5% down (500+ with 10% down) No official minimum (most lenders look for 620+) Usually 640+
Debt-to-Income (DTI) Typically under 43% Up to 50% with compensating factors Flexible (guideline 41%, higher often allowed) Typically under 41%
Down Payment 3% minimum (5–20% more common) 3.5% minimum 0% required 0% required
Mortgage Insurance Required if <20% down; drops off at 20% equity Required for life of loan (MIP) None None, but small annual fee applies
Documentation Proof of income, tax returns, employment history Similar documentation, more flexible credit standards Proof of military service, income verification Income verification + rural property eligibility
Funding/Guarantee Fee None 1.75% upfront MIP (financed or paid at closing) VA funding fee (waived for disabled vets) 1% upfront guarantee fee (financed or paid at closing)
Property Eligibility Primary, second homes, and investment properties Primary residence only Primary residence only Primary residence in USDA-eligible rural areas

Is Conventional Loan Right for Me?


  • Conventional Loans are best for borrowers with good credit and stable income who want flexibility (including second homes or investment properties).


  • FHA Loans help first-time buyers with lower credit, but mortgage insurance stays for the life of the loan.


  • VA Loans are the top choice for veterans and service members thanks to 0% down and no PMI.


  • USDA Loans are great for buyers in rural or suburban areas who meet income requirements.


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Conventional Loan FAQs

Got a question? We’re here to help.

  • What is the minimum credit score required for a conventional loan?

    The minimum credit score required for a conventional loan can vary depending on the lender and the type of loan, but generally, a credit score of 620 or higher is required. However, a higher credit score can help you qualify for better rates and terms.

  • How much of a down payment is required for a conventional loan?

    The down payment required for a conventional loan can vary depending on the lender and the type of loan but typically ranges from 3-20% of the purchase price. A higher down payment can help you qualify for better rates and terms.

  • Is mortgage insurance required for a conventional loan?

    Mortgage insurance is typically required for conventional loans if the borrower makes a down payment of less than 20% of the purchase price. The type of mortgage insurance required can vary but may include private mortgage insurance (PMI) or lender-paid mortgage insurance (LPMI).

  • How long does it take to get approved for a conventional loan?

    The time it takes to get approved for a conventional loan can vary depending on the lender and the complexity of the application. Generally, it can take anywhere from several days to several weeks to get approved.

  • What is the maximum loan amount for a conventional loan?

    The maximum loan amount for a conventional loan can vary depending on the lender and the property's location. In most areas, the maximum loan amount for a conventional loan is $548,250 for a single-family home, but this amount can be higher in certain high-cost areas.

  • Can I use a conventional loan to finance an investment property?

    Yes, conventional loans can be used to finance investment properties, such as rental properties or vacation homes. However, the requirements and terms may be different from those for a primary residence.

  • How can I compare rates and terms from different lenders for a conventional loan?

    To compare rates and terms from different lenders for a conventional loan, it's important to shop around and get quotes from multiple lenders. You can also use online comparison tools to help you compare rates and terms from different lenders.