Conventional Loans
The most flexible mortgage for buyers with good credit. Lower long-term costs than FHA, no upfront MIP, and available for primary, vacation, or investment properties.
Conventional 97 (3% Down)
Only 3% down. Ideal for first-time buyers or those with good credit.
- 3% down payment
- FICO from 620
- No upfront mortgage insurance
- Lower PMI than FHA for scores 700+
- Primary residence only
Conventional Standard (5–20% Down)
The most popular conventional loan. Flexible terms and competitive rates.
- 5% down (primary / second home)
- 10% down (investment property)
- PMI cancels at 20% equity
- Fixed and adjustable rate options
- Primary, vacation and investment
HomeReady / HomePossible
Fannie Mae and Freddie Mac programs for moderate-income buyers.
- 3% down payment
- Income limits apply (area median income)
- Reduced PMI premium
- Boarder and ADU income eligible
- First-time buyer and repeat buyer eligible
Jumbo Conventional
Loan amounts above the conforming limit ($806,500 in 2025). For high-value homes.
- Loan amounts above $806,500
- FICO 700+ typically
- 10–20% down payment
- Full doc qualification
- Available in TX, FL, CA and more
Second Home / Vacation Home
Finance a vacation property or seasonal home with conventional financing.
- 10% minimum down payment
- Must be single-family, condo, or townhome
- Cannot be a rental property or time-share
- Must be available for owner use year-round
- FICO 620+ · Fixed or ARM options available
Conventional Loan Requirements
- FICO 620+ (700+ for best rates)
- Stable income: W-2, 1099, or self-employed
- DTI ratio under 45%
- Primary, vacation, or investment property
- Conforming loan limits ($806,500 in 2025)
- PMI required if < 20% down (cancellable)
Keep learning
FHA vs Conventional: Which Mortgage Should You Choose?
Not sure which loan fits your situation? Let's break it down with real numbers — no jargon, no pressure.
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No, You Don't Need 20% Down to Buy a Home
Most of my clients are shocked when they find out how little they actually need to get started. Let me break it down for you — no fluff, just real numbers.
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