CONVENTIONAL LOAN
The conventional loan, explained without the jargon.
The most common mortgage in America - not backed by a government program, flexible on terms, and the one most buyers with steady credit end up using. Here’s exactly how it works.
3%
MINIMUM DOWN PAYMENT
620+
TYPICAL CREDIT SCORE
20%
EQUITY TO DROP PMI
WHAT IT IS
A standard loan, with room to flex.
A conventional loan is simply a mortgage that isn't insured by a government agency like the FHA, VA, or USDA. Instead, it follows guidelines set by Fannie Mae and Freddie Mac, which is why you'll sometimes hear it called a "conforming" loan.
Because it isn't government-backed, lenders lean more on your credit and finances — but in return you get flexibility. You can put down as little as 3%, and once you reach 20% equity, you can request to drop private mortgage insurance (PMI) entirely, which lowers your monthly payment.
For buyers with reliable income and decent credit, it's often the most cost-effective path over the life of the loan.
IS IT RIGHT FOR YOU?
Where a conventional loan shines
& where to look twice.
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A Strong Fit If...
You have a credit score around 620 or higher
You want to avoid long-term mortgage insurance
You can put down 5% or more (though 3% is possible)
You’re buying a primary home, second home, or rental
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Worth Weighing...
Lower credit scores may mean a higher rate than FHA
PMI applies until you reach 20% equity
Stricter debt-to-income limits than government loans
Self-employed incomes take more documentation
THE NUMBERS
Typical requirements at a glance.
Guidelines, not guarantees — your exact picture depends on the full application. Here's the honest ballpark.
Minimum Down Payment
As low as 3% for many first-time buyers; 5% is common.
Credit Score
Usually 620 or above; higher scores earn better rates.
Debt-to-income
Generally up to ~45%; sometimes higher with strong credit.
Mortgage Insurance
PMI required under 20% down; removable at 20% equity.
Loan limits
Follows annual conforming limits for your county.
HOW IT GOES
Conventional loan, start to keys.
PRE-APPROVAL
We verify income, assets, and credit so you know your real budget before you shop.
01
FIND YOUR HOME
You make an offer; once accepted, the formal application begins.
02
UNDERWRITING & APPRAISAL
The lender confirms everything and an appraisal validates the home’s value.
03
CLOSING
You review the disclosure and paperwork with me, sign, and the home is yours.
04
RUN YOUR NUMBERS
Curious what your monthly payment could be?
Adjust the numbers below to see an estimated monthly payment, taxes and insurance included. This mortgage calculator is just for demonstration purposes and may not reflect actual numbers for your specific mortgage. Contact me to walk through the best possible mortgage scenarios for your specific needs.
What would your monthly payment be?
The full picture — principal, interest, taxes, and insurance — not just the loan portion. Move the sliders to match your situation.
Estimate for education only. Taxes & insurance assumed ~1.5%/yr of price; PMI (~0.6%/yr of loan) applies under 20% down and drops off later. Your real numbers depend on location and program. Not a commitment to lend. Equal Housing Opportunity · NMLS #2650609.
Get your exact payment →STRAIGHT ANSWERS
Common questions about conventional loans.
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Many conventional loans allow as little as 3% down for qualified buyers. More down lowers your payment and removes PMI faster, but 20% is not required.
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Private mortgage insurance protects the lender when you put down less than 20%. On a conventional loan you can request its removal once you reach 20% equity — a key advantage over FHA.
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It depends. FHA is friendlier to lower credit; conventional usually wins long-term if your credit is solid because PMI is removable. I'll run both side by side for you.
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Yes — I originate conventional loans in Washington, Montana, and South Dakota.
KEEP EXPLORING
Other Loan Types.
NO PRESSURE, NO OBLIGATION
Not sure if conventional is your best move?
That’s exactly what a first conversation is for. We’ll compare your real options - no commitment, no pressure.
CALL (360) 600-8250 - LICENSED IN WA - MT - SD - WY