purchase
Conventional Loans
Flexible, competitive financing for borrowers with solid credit and steady income.
Eligibility
- Credit score typically 620+
- Down payments as low as 3% for qualified buyers
- Single-family, condo, or multi-unit primary residences
Key benefits
- No upfront mortgage insurance premium
- PMI cancellable once you reach 20% equity
- Wide range of fixed and adjustable terms
What is a conventional loan?
A conventional loan is a mortgage that isn't backed by a government agency like the FHA or VA. It's the most common type of mortgage and offers flexible terms for borrowers with established credit. Most conventional loans are fixed-rate, meaning your principal and interest payment stays the same for the life of the loan.
Who it's for
Borrowers with solid credit, a stable income, and funds for at least a small down payment will often find a conventional loan the most cost-effective path home. If you can comfortably cover a larger share of the purchase price and want predictable payments, a fixed-rate conventional loan is often the simplest, most stable choice.
How a fixed-rate loan works
The traditional fixed-rate mortgage is the most common loan program, where your monthly principal and interest payments never change over the life of the loan. Fixed-rate loans are available in terms ranging from 10 to 30 years and, in most cases, can be paid off early without penalty. The loan is structured, or "amortized," so it is fully paid off by the end of the term.
One thing to know: even with a fixed rate, your total monthly payment can change if you have an escrow (impound) account. Many lenders collect a prorated amount each month for property taxes and homeowners insurance, then pay those bills on your behalf when they come due. If your taxes or insurance change, your monthly payment is adjusted to match. The principal and interest portion, though, stays steady and predictable.
We'll help you compare conventional terms side by side so you can see how the down payment, mortgage insurance, and monthly payment work together for your situation.
Frequently asked
- What credit score do I need for a conventional loan?
- Most conventional programs look for a score of 620 or higher, though stronger scores unlock better pricing.
- Can I avoid PMI on a conventional loan?
- PMI applies when your down payment is under 20%, but it can be cancelled once you build 20% equity — unlike FHA mortgage insurance.