Simplify your financing with a conventional loan
Protect your home investment with a low-cost, straightforward mortgage option built to last.
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What is a Conventional Loan?
A conventional loan is a privately funded loan with fewer restrictions than government-backed loans. Buyers with good credit can enjoy lower rates, smaller mortgage insurance premiums, and broader property eligibility.
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Do you qualify for a Conventional Loan?
Understanding Conventional loan requirements is your first step toward homeownership.
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Property requirements
Conventional loans can be used to purchase a primary residence, second home, or investment property. The property must be safe, livable, and meet basic lending standards.
Credit requirements
A minimum credit score of 620 is required to qualify. Higher credit scores unlock better interest rates and make you eligible to remove mortgage insurance sooner.
Financial requirements
Your debt-to-income ratio must generally be 45% or lower to qualify. Strong credit or a higher down payment can strengthen your application even further.
Conventional Loan benefits
Conventional loans offer long-term savings and more freedom in how you buy your home.
Lower monthly payments with great credit
No mortgage insurance with 20% dow
Competitive interest rates
Flexible credit requirements
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Expert mortgage specialists with extensive training and years of experience. We simplify the process for first-time buyers and unique financial situations, ensuring you get the right loan.
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FAQ’s
Find answers to common questions about conventional loans and the application process.
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What is a Conventional Loan?
A conventional loan is a mortgage that is not backed by any government agency. It is issued and serviced by private lenders and follows guidelines set by Fannie Mae and Freddie Mac. It’s a popular option for buyers with strong credit, steady income, and the ability to make a down payment.
Who is eligible for a Conventional Loan?
Conventional loans are available to first-time buyers, repeat buyers, and investors. Borrowers typically need a minimum credit score of 620, a stable income, and a down payment starting at 3% for qualified applicants.
What is the down payment requirement for a Conventional Loan?
Qualified first-time homebuyers can get a conventional loan with as little as 3% down. Other buyers typically need 5% or more. Putting down 20% eliminates the need for private mortgage insurance (PMI).
Do I need private mortgage insurance (PMI) with a Conventional Loan?
Yes, if you put down less than 20%, PMI is required. The good news is that PMI can be canceled once you reach 20% equity in your home.
What are the benefits of a Conventional Loan?
Conventional loans offer competitive interest rates, flexible terms, and the ability to remove PMI. They can be used for primary residences, second homes or investment properties, offering versatility for eligible borrowers.
Can I refinance with a Conventional Loan?
Yes, conventional loans can be used for refinancing. You can switch from another loan type, shorten your loan term or cash out equity, depending on your financial goals and eligibility.
What types of Conventional Loans are available?
You can choose between fixed-rate and adjustable-rate mortgages (ARMs), with term options typically ranging from 10 to 30 years. Fixed-rate loans offer long-term stability, while ARMs start with lower initial rates.
Are there limits on how much I can borrow with a Conventional Loan?
Yes. To qualify as a conforming conventional loan, the loan amount must be within the annual limits set by the Federal Housing Finance Agency (FHFA). For 2025, that limit is $806,500 for a single-family home in most areas.
What types of properties can I buy with a Conventional Loan?
Conventional loans can be used to purchase a wide range of properties, including single-family homes, condos and townhomes. They may also be used for multi-unit properties with up to four units.
NMLS 1743790
For information purposes only. This is not a commitment to lend or extend credit.
Information and/or dates are subject to change without notice. All loans are subject to credit approval.
Debt Does Deals, LLC D/B/A Be My Neighbor NMLS # 1743790 Equal Housing Opportunity, 2025 All Rights Reserved
