Conventional Loans

Conventional loans follow Fannie Mae and Freddie Mac guidelines. They often work best for buyers with stronger credit, stable income and at least some savings.

Key Features

  • Down payments can start as low as 3% for certain buyers and property types.
  • Private mortgage insurance (PMI) can be removed later once enough equity is built.
  • Many term options (15, 20, 30 years and more) and interest-rate structures.
  • Common choice for primary homes, second homes and many investment properties.

Pros of Conventional Loans

  • PMI can eventually go away, reducing your monthly payment.
  • Better pricing for higher credit scores and strong financials.
  • More flexibility for condos, second homes and some investments.
  • Typically fewer property-condition overlays than FHA in some cases.

Things to Watch

  • More sensitive to credit scores – lower scores can mean higher rates and PMI.
  • Stricter about recent late payments, bankruptcies or foreclosures.
  • Down payments may be higher for multi-unit or investment properties.

These are general patterns, not promises. Exact options depend on current guidelines and your full application.

FHA vs Conventional – Rough Comparison

Very roughly (there are always exceptions):

  • FHA often fits buyers with fair credit or limited savings who want a lower entry point.
  • Conventional often fits buyers with stronger credit and reserves, especially long term.

Use the Rent vs Buy Calculator and DTI tools to get a baseline, then request a written comparison on the Get Your Plan page.