The default for qualified buyers.
Fixed or adjustable financing with down payments as low as 3%.
Conventional.
Conventional loans are the most common mortgage in the U.S. They're not government-backed, which gives them the widest structural range: primary, second, or investment; fixed or adjustable; PMI that drops off automatically once you hit 20% equity. For most buyers with decent credit, they deliver the best balance of rate and flexibility.
- ✓Buyers with credit scores of 680+
- ✓Move-up buyers with meaningful down payments
- ✓Investors buying rental property
- ✓Anyone who wants to avoid long-term mortgage insurance
Questions we get about conventional.
What's the minimum down payment on a conventional loan?
3% for qualified first-time buyers on a primary residence. For other conventional programs, the minimum is typically 5%. Higher down payments reduce or eliminate PMI and often improve your rate.
Do I need 20% down to avoid PMI?
Yes, PMI is required when your LTV is above 80%. It's automatically removed once LTV reaches 78%, or you can request removal at 80% based on current value.
Can I use a conventional loan for an investment property?
Yes. Expect a higher minimum down payment (15–25%) and a small rate premium versus owner-occupied.