What is a conventional loan?
A conventional loan is a mortgage that isn't backed by a government program like FHA or VA. Most follow guidelines set by Fannie Mae and Freddie Mac. For buyers with solid credit, conventional loans often offer the best long-term costs and the flexibility to remove mortgage insurance later. It's the standard for a reason, when done right.
What are the requirements for a conventional loan?
Conventional loans generally reward stronger credit and stable income, with a manageable debt-to-income ratio. Guidelines vary by program and lender. There's no single magic number, but better credit usually means better terms. Because I work with many lenders, I match your profile to the right lender. I'll review your full picture and tell you exactly where you stand.
What down payment options exist for conventional loans?
Conventional down payments can start as low as 3% with programs like HomeReady and HomePossible, and many buyers put down 5%, 10%, or 20%. More down can mean a lower payment and no mortgage insurance. I'll show you the trade-offs for your situation so you choose a down payment that fits your budget and your goals.
What is PMI and how do I remove it?
PMI is private mortgage insurance, usually required on conventional loans when you put down less than 20%. The good news: unlike FHA, conventional PMI can typically be removed once you build enough equity, often around 20%. That can lower your payment over time. I'll explain how PMI works on your loan and the path to dropping it.
Fixed vs ARM: which conventional loan is right?
A fixed-rate loan keeps the same rate for the life of the loan, giving you a predictable payment. An adjustable-rate mortgage starts lower but can change after an initial period. Fixed suits buyers who value stability or plan to stay long term. The right call depends on your timeline and risk comfort, and I'll walk you through both.
When does conventional beat FHA?
Conventional often wins for buyers with strong credit because you can remove mortgage insurance once you build equity, lowering long-term costs. FHA may still be better for flexible credit or smaller down payments. The smart move is comparing real numbers for your situation. As your loan officer, I run both and recommend whichever genuinely costs you less.