Flexible Financing with Conventional Loans
A great choice for borrowers with strong credit and steady income—competitive rates and versatile options.
- Lower interest rates for well-qualified borrowers
- Flexible loan terms (10, 15, 20, or 30 years)
- Lower private mortgage insurance (PMI) costs
- No upfront mortgage insurance premium
- Available for primary, secondary, and investment properties
- Higher loan limits than government-backed loans
- More options for fixed-rate and adjustable-rate mortgages
- Can be used for refinancing to lower payments
- No property restrictions (unlike FHA or VA loans)
- Streamlined approval for strong credit profiles
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Standard Home Loan
Conventional loans are one of the most popular mortgage options for borrowers with strong credit and steady income. Unlike government-backed loans, conventional loans offer more flexibility in terms of loan amounts, property types, and mortgage insurance requirements.
One major benefit of a conventional loan is lower interest rates for well-qualified borrowers, which can save homeowners thousands of dollars over the life of the loan. These loans also come with various term lengths (10, 15, 20, or 30 years), giving borrowers control over their repayment schedule.
Unlike FHA loans, conventional loans do not require an upfront mortgage insurance premium (MIP). If a borrower puts 20% or more down, they can avoid private mortgage insurance (PMI) altogether, which lowers monthly costs. Even if PMI is required, it’s usually lower than FHA mortgage insurance and can be removed once the homeowner reaches 20% equity.
Conventional loans are available for primary residences, second homes, and investment properties, making them a versatile option. They can also be used for refinancing an existing loan, either to lower monthly payments or to cash out home equity.
For borrowers with strong credit and a stable income, a conventional loan provides the best mix of low rates, flexible terms, and minimal extra fees.
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What are the benefits of a conventional loan compared to government-backed loans?
Conventional loans typically offer lower interest rates for well-qualified borrowers, more flexible loan terms, and no upfront mortgage insurance premium. They also provide higher loan limits and can be used for primary, secondary, or investment properties.
What credit score is required for a conventional loan?
Most lenders require a minimum credit score of 620 to qualify for a conventional loan. However, borrowers with scores of 740 or higher may qualify for the best interest rates and lower private mortgage insurance (PMI) costs.
Do I need private mortgage insurance (PMI) for a conventional loan?
PMI is required if your down payment is less than 20%. However, PMI can be removed once you reach 20% equity in your home, unlike FHA loans, which require mortgage insurance for the life of the loan in many cases.