Conventional loans
Conventional financing is the standard path for many buyers with solid credit, stable income, and a plan that does not need a government-backed loan.
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by the federal government. These loans are typically backed by private investors and often follow Fannie Mae or Freddie Mac guidelines.
They are common for borrowers who have stronger credit, consistent income, and enough savings to make the file cleaner. Conventional financing can also offer more flexibility for second homes and investment properties.
Why buyers choose it
- As little as 3% down for some qualified first-time buyers
- No upfront mortgage insurance premium like FHA loans require
- Works for primary homes, second homes, and many investment scenarios
- Fixed-rate and adjustable-rate options available
Who it usually fits best
- Borrowers with stronger credit profiles
- Buyers who want flexible occupancy options
- Clients who can put more down and reduce or avoid PMI
- Homeowners comparing conventional financing against FHA or other government-backed programs
What to expect
| Minimum credit | Often 620+ |
|---|---|
| Down payment | Usually 3% to 20%+ |
| Occupancy | Primary, second home, or investment depending on file |
| Mortgage insurance | Usually required below 20% down |
Final terms depend on credit, reserves, occupancy, property type, loan size, and the full file. This page is a practical overview, not a rate quote or approval.
A quick reality check
Conventional is often the cleanest option, but not automatically the best one. If your down payment is tight, your credit is still recovering, or you want to combine financing with assistance programs, FHA or another path may make more sense.
The right move is comparing the monthly payment, cash-to-close, mortgage insurance impact, and long-term flexibility before picking a lane.
Abel Medero, NMLS #1010813. VMA Lending, LLC, NMLS #2734596. Licensed mortgage broker, State of Florida. This is not a commitment to lend. All loan programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice. Not all applicants will qualify. Conventional loans may require private mortgage insurance below certain down-payment thresholds. Equal Housing Opportunity.