Discover why conventional loans are the most popular mortgage option for homebuyers across America. With competitive rates, flexible terms, and lower monthly payments, find out if a conventional loan is your best path to homeownership.
Conventional loans are mortgage loans that are not insured or guaranteed by the federal government. They are available through private lenders, such as banks, credit unions, and mortgage companies.
As the most popular home loan option, conventional mortgages adhere to the guidelines set by Fannie Mae and Freddie Mac, the government-sponsored enterprises that purchase mortgages from lenders.
Conventional loans offer numerous advantages for qualified borrowers seeking the best mortgage option
Conventional loans offer down payments as low as 3% for qualified first-time homebuyers.
Enjoy some of the most competitive interest rates in the mortgage market, potentially saving you thousands over the life of your loan.
Unlike FHA loans, conventional loans don't require upfront mortgage insurance premium payments.
Choose from various term options including 15, 20, and 30-year fixed-rate or adjustable-rate mortgages.
Once you reach 20% equity in your home, you can request to have the Private Mortgage Insurance removed.
Conventional loans offer higher loan limits compared to some government-backed loans, allowing you to purchase more expensive homes.
Understanding what lenders look for can help you prepare for the mortgage application process
Minimum Requirement
620+
Preferred Qualification
740+ for best rates
Your credit score is a major factor in qualifying for a conventional loan and determining your interest rate.
Minimum Requirement
43% maximum
Preferred Qualification
36% or lower
This ratio compares your monthly debt payments to your gross monthly income. Lower DTI ratios demonstrate better ability to manage mortgage payments.
A simple step-by-step guide to getting your conventional mortgage
Start with a pre-approval to understand your budget and show sellers you're a serious buyer. We'll review your credit, income, and assets.
Work with a real estate agent to find a home that meets your needs and falls within your pre-approved budget.
Complete a full mortgage application and provide all necessary documentation for underwriting.
We'll verify your information, order an appraisal, and ensure all requirements are met for loan approval.
Review and sign your final loan documents, pay your closing costs, and receive the keys to your new home!
See how conventional loans stack up against other popular mortgage options
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Minimum Down Payment | 3-5% | 3.5% | 0% | 0% |
| Minimum Credit Score | 620+ | 580+ | No minimum (620+ typical) | 640+ typical |
| Mortgage Insurance | PMI required if down payment is less than 20% (can be removed) | Upfront MIP + Annual MIP (cannot be removed for most loans) | Funding fee (no monthly MI) | Upfront guarantee fee + Annual fee |
| Property Type Restrictions | Primary, secondary, investment | Primary residence only | Primary residence only | Primary residence in rural areas only |
| Income Limits | None for standard loans | None | None | Limited to moderate incomes |
Get answers to common questions about conventional loans
Let us help you navigate the conventional loan process and find the perfect mortgage solution for your unique situation.
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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. E Mortgage Capital, Inc. d/b/a E Mortgage Capital, NMLS# 1416824. Equal Housing Lender (NMLS consumer access: https://www.nmlsconsumeraccess.org/_)
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A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at