Conventional Loans

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• Conventional mortgages are home loans that aren't insured or guaranteed by a federal government agency such as the FHA or VA. 
• They are among the most widely used mortgage options and can provide competitive financing for qualified borrowers.

• Conventional financing can offer flexibility for primary residences, second homes and investment properties, depending on the program and borrower qualifications.
• Borrowers with stronger credit profiles and sufficient down payments may find conventional financing particularly attractive.

Flexible Down Payments

• Some qualified borrowers may be eligible for conventional financing with relatively low down payments.

Potential to Eliminate PMI

• When private mortgage insurance (PMI) is required, borrowers generally may request cancellation once the loan reaches ≤ 80% LTV. PMI typically terminates automatically at 78% LTV for eligible conventional loans

Multiple Property Types

• Conventional financing can potentially be used for primary residences, second homes and investment properties.

Various Loan Terms

• Borrowers may have access to multiple repayment terms and fixed- or adjustable-rate structures depending on available programs.

• Neither program is universally better.
• FHA financing can provide additional flexibility for certain borrowers, while conventional financing may offer advantages to borrowers with stronger credit, larger down payments, or particular property and financial goals.
• That's why comparing the total financing picture is more useful than simply choosing whichever program advertises the lowest down payment.

Conventional financing may make sense for borrowers with established credit, borrowers purchasing a second home or investment property, buyers who want the possibility of eliminating mortgage insurance later, and borrowers who simply qualify for better overall terms through conventional financing.

Do conventional loans require 20% down?

• No. A 20% down payment is not always required. Available minimum down payments depend on the particular program and borrower qualifications.

What is PMI?

• Private mortgage insurance, or PMI, is generally required on certain conventional loans when the borrower has less than 20% equity at origination. Requirements vary.

Can I finance an investment property?

• Yes, certain conventional programs can be used to finance eligible investment properties, although requirements typically differ from those for a primary residence. Click on our investment properties link for more details. 

We'll help you compare available loan structures and determine which financing options fit your goals. Reach out , or submit a quote today.