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Get a Conventional Loan

A conventional loan is a type of mortgage that is not insured or guaranteed by the government. Instead, conventional loans are offered by private lenders, such as banks and credit unions, and are typically sold to investors on the secondary market.

What is a Conventional Loan?

A conventional loan is a type of mortgage that is not insured or guaranteed by the government. Unlike government-backed loans such as FHA, VA, and USDA loans, conventional loans are originated and serviced by private lenders, such as banks, credit unions, and mortgage companies.


Conventional loans come in different forms, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), and jumbo loans. These loans typically require a higher credit score and a lower debt-to-income ratio compared to government-backed loans. Borrowers are also required to make a down payment, with a typical minimum down payment of 3-20% of the purchase price.


Conventional loans offer several advantages, including the ability to finance a wide range of properties, including primary residences, second homes, and investment properties. Conventional loans also offer more flexibility and customization in terms of loan duration and payment options. Additionally, conventional loans don't require mortgage insurance if the borrower puts down at least 20% of the purchase price.


However, conventional loans also have some potential downsides, including higher interest rates and stricter credit requirements compared to government-backed loans. Borrowers may also need to pay for private mortgage insurance if they make a down payment of less than 20%, which can increase the overall cost of the loan.


Overall, conventional loans can be a good option for borrowers with strong credit and financial stability who want flexibility and customization in their mortgage. However, it's important to shop around and compare rates and terms from multiple lenders to find the best loan for your needs.

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Put your mortgage to work for you

Cash out

Leverage your investment and take advantage of the equity your home has built for years.

Great For

Renovating your home

Paying down high-interest debt

Use my equity

Lower payments

Increase your financial security by refinancing to lower your monthly mortgage payment.

Great For

Increasing cash flow

Saving for retirement

Lower my payment

Reduce loan term

Why wait when you can refinance into a shorter term and pay your mortgage off.

Great For

Reducing interest
Paying off mortgages faster

Reduce my term

The Financing Process


Homebuyers often start by requesting a quote for their interest rate or beginning an application with a lender. By sharing basic information about your potential purchase, we’ll work with you to pull your credit report and discuss your finances, as well the potential value of the house you’re interested in purchasing.


As we move through the process we’ll arrange for an appraisal of the house to determine its value. We’ll also discuss the terms you qualify for and your options, as well as request various documentation for the underwriting process to make sure the loan begins on a solid foundation.


We’re with you through each step, leading to closing where we’ll finalize your affordable loan when you’re ready to purchase.

Conventional Loan Requirements to Meet


If you have questions about these requirements, we’re here to help. In most cases it’s best to have a credit score of 620 or higher. With higher credit scores often comes better interest rates. Through underwriting evaluation, you’ll need documentation of consistent income with a Debt-to-Income ratio at or below 50%. This ratio shows how much of your monthly income goes to paying your debt. Along with income information you need to share employment verification and history.


First-time homebuyers need a down payment of 3% or more. This minimum requirement goes up based on your income, if it’s a second home purchase, and other factors.


A down payment less than 20% requires paying Private Mortgage Insurance (PMI) premiums until you’ve paid 20% equity into the home, meaning you reach a Loan-to-Value ratio of 80%.

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.

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