Conventional Mortgage
A conventional mortgage is a home loan that is not backed by a government agency. It is the most common option and usually rewards stronger credit, steady income, and cash to close.
Get Your Conventional RateKey Features
- ✓Fixed-rate or adjustable-rate options
- ✓Common terms from shorter to longer
- ✓Mortgage insurance may be required with smaller down payments
- ✓PMI can be removed once you build enough equity
- ✓Works for many property types and occupancy
Who Is a Conventional Loan a Good Fit For?
- Borrowers with steady income and documented assets
- Buyers who can bring some cash to close
- People who want straightforward underwriting
- Homebuyers who want the option to remove mortgage insurance
Requirements
Credit Score
Varies by lender; stronger scores usually price better.
Down Payment
Varies by program; more down can lower costs.
Debt-to-Income
Lower is better; lenders compare monthly debt to income.
Pros and Cons
Advantages
- +Widely available across lenders
- +Competitive pricing for strong credit profiles
- +Mortgage insurance can be removed
- +Flexible terms and property types
- +Clear, familiar underwriting rules
Considerations
- -Pricing can vary a lot between lenders
- -Mortgage insurance can raise monthly costs
- -Full documentation required
- -Lower credit can raise rates and fees
The Questions Everyone Asks
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