Conventional Loans
The most common path for buyers with steady, documentable income — not backed by a government agency, and often the most flexible option once you qualify.
Run the DTI Calculator Ask SarahTYPICAL MIN. DOWN
As low as 3%
PMI
If under 20% down
BEST FOR
Steady, documentable income
What is a conventional loan?
A conventional loan is a mortgage not insured or guaranteed by a government agency, typically following underwriting guidelines set by Fannie Mae or Freddie Mac. For buyers with solid credit and steady income, conventional financing is often the most flexible path.
How much down payment do I need?
Some conventional programs allow down payments as low as 3%, though the exact minimum depends on credit score, loan amount, and property type. A larger down payment can mean a better rate and no mortgage insurance at all.
When does PMI go away on a conventional loan?
PMI on a conventional loan is generally required when the down payment is under 20%, and can typically be removed once the loan balance reaches 80% of the home's original value. This is one of the real advantages conventional financing has over FHA.
"My job is to give you an honest picture of where you stand and what it takes to get there."
— Sarah Baraz