Conventional Loans
What it is: Conventional loans are the most common type of mortgage in the U.S. — they’re not insured or guaranteed by any government agency like the FHA or VA. Instead, they’re offered by private lenders and follow underwriting standards set by Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that help maintain stability in the mortgage market. Because these loans are not government-backed, lenders typically require stronger credit and financial profiles from borrowers. Conventional loans are versatile and can be used to purchase or refinance a primary residence, second home, or investment property.
Best for: Borrowers with consistent income, established credit history, and the ability to make a reasonable down payment — typically between 3% and 20%. They’re also ideal for buyers who want flexible loan options, competitive rates, and the ability to cancel private mortgage insurance (PMI) once sufficient equity is reached. For financially secure individuals, conventional mortgages offer some of the lowest long-term borrowing costs available.
Eligibility snapshot
To qualify, borrowers typically need a minimum credit score of 620 or higher, along with a stable source of income and verified employment.
Terms and feature
Conventional mortgages come with both fixed-rate and adjustable-rate options, offering flexibility in how borrowers structure their payments.
Documents you’ll need
ID or Social Security Number, proof of income through W-2s, pay stubs, or tax returns (if self-employed)
Do we process this loan type ?
Pros
- Broad flexibility with eligibility for primary, secondary, and investment properties
- Customizable loan terms ranging from 10 to 30 years
- Lower long-term costs once PMI (Private Mortgage Insurance) is removed
- Widely accepted by most lenders with various program options available
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