The broadest options.
The lowest long-term cost.

A conventional loan is any mortgage not backed by a government agency (FHA, VA, or USDA). Most conventional loans follow guidelines set by Fannie Mae or Freddie Mac and are sometimes called 'conforming' loans when the amount falls within their published limits. Conventional loans are available for primary residences, second homes, and investment properties.

Conventional loans can require as little as 3% down through certain Fannie Mae and Freddie Mac programs. Typical down payments are 5–20%. Putting 20% down eliminates private mortgage insurance (PMI) entirely, which is the key advantage over FHA. With 10% down you'll have PMI but it will cancel once you reach 80% LTV — automatically at 78% by law.

Private mortgage insurance (PMI) is required when your down payment is less than 20%. Unlike FHA mortgage insurance, conventional PMI cancels automatically when your loan balance reaches 78% of the original purchase price — and you can request removal at 80% LTV. For borrowers with strong credit and equity growth, the total PMI cost is often lower than FHA's lifetime MIP.

Most lenders require a minimum 620 credit score for conventional financing. However, pricing improves significantly at 680, 720, and 760+. Borrowers with scores above 720 typically get the best interest rates and PMI costs on conventional loans. If your score is below 680, we may compare FHA and conventional side-by-side to show you the better overall deal.

For 2025, the conforming loan limit is $806,500 for most U.S. counties. In high-cost areas (parts of California, New York, Hawaii, etc.), limits are higher. Loans above these limits are called jumbo loans and require their own underwriting — we originate both conforming conventional and jumbo loans through our lender network.

Yes. Conventional loans are available for primary residences, second homes, and investment properties (1–4 units). FHA and USDA loans are primary-residence only, so conventional is the go-to for investors who need traditional financing. For investors qualifying on rental income rather than personal income, a DSCR loan may be worth comparing.

It depends on your credit score, down payment, and timeline. Conventional is usually better when your score is 720+ or your down payment is 20%+. FHA often wins with lower credit scores (580–679), smaller down payments, or when you need gift funds. We run both scenarios and show you the true 5-year cost comparison — so you make the decision with full information.

You can request PMI cancellation in writing once your loan balance reaches 80% of the original purchase price (based on scheduled payments or extra principal paydowns). Lenders are legally required to automatically cancel PMI at 78% LTV based on original amortization schedule. If your home's value has increased significantly, a new appraisal may establish a lower LTV and accelerate cancellation.