Can I use a conventional loan for my first home?

Absolutely. In fact, one of the most popular conventional programs is designed specifically for first-time buyers, with reduced mortgage insurance and lower down payment requirements. It's often more affordable month-to-month than FHA once we compare real numbers side by side.

Can I buy an investment property?

Yes. Conventional financing is one of the primary ways investors purchase single-family rentals and small multi-unit properties. Down payment expectations are higher for investment — typically 15–25% — and rates are priced slightly differently, but the guidelines are well-established.

What credit score do I need?

Most conventional programs start at a 620 credit score, though pricing improves meaningfully as your score climbs. If your score sits below that, an FHA loan may be a stronger short-term fit while you continue to build. We'll show you what your score actually costs you in rate and PMI before you commit.

Will I have mortgage insurance forever?

No — and this is a major advantage of conventional financing. Private mortgage insurance (PMI) drops off automatically once you reach 20% equity, and you can request its removal even earlier under certain conditions. Unlike FHA mortgage insurance, it's not built into the loan for life.

Corie Adams

Lending Team|Personalized Mortgage Experience

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Buying a Home·6–8 min read

Conventional Loans.

The mortgage most people end up choosing — and why it isn't just for perfect borrowers.

A welcoming front porch at golden hour with rocking chairs, ferns, and a wreath on the front door

Most of the mortgages I close every year are conventional loans.

Not because they're the flashiest program. Not because they carry the lowest advertised rate on any given day. But because — for buyers with steady income and reasonable credit — they quietly do the best job of keeping monthly payments predictable and equity building over time.

Conventional loans have also changed. A lot. The old stereotype — 20% down, perfect credit, thick tax returns — hasn't reflected reality for more than a decade. Today's conventional programs are more flexible than most buyers realize, and often the right answer for people who assumed they'd need something else.

Section I

What is a conventional loan?

A conventional loan is a mortgage that isn't insured or guaranteed by a government agency. It's the largest category of home loans in the country and, for most qualified buyers, the default option to compare everything else against.

Not backed or insured by the federal government (unlike FHA, VA, or USDA)
Follows guidelines set by Fannie Mae and Freddie Mac
Loan amounts up to the conforming limit (higher in certain counties)
Available for primary residences, second homes, and investment properties
Fixed-rate terms of 10, 15, 20, or 30 years — plus adjustable options

Section II

Why buyers choose conventional financing.

Conventional loans get chosen because they're flexible in the ways that matter most: how much you put down, what kind of home you're buying, and how long the payment stays with you.

The mortgage insurance drops off automatically once you reach 20% equity — meaningful savings over the life of the loan. The property rules are more generous than most government programs. And unlike some specialty loans, this financing is available for a second home on the shore or a rental across town, not just your primary residence.

What Works Well

Down payments starting at 3% for first-time buyers
PMI removes automatically at 20% equity
Works for primary, second home, and investment
Fixed or adjustable — 10 to 30 year terms
Higher loan limits than most government programs

Things to Consider

Credit expectations are meaningful — typically 620+
Debt-to-income guidelines are firmer than FHA
PMI applies below 20% down (removable, not permanent)
Documentation is thorough — expect a real underwriting review

Section III

Frequently asked questions.

No. Conventional loans commonly start at 5% down, and certain qualifying first-time buyers and programs allow 3% down. Twenty percent down removes private mortgage insurance and lowers your payment, but it isn't required to qualify. The right down payment depends on your goals — not on a rule of thumb.

Section IV

Is a conventional loan right for you?

Conventional May Be a Great Fit If You

Have steady income
Have established credit
Want flexible down payment options
Are buying a primary residence
Are purchasing a second home
Are investing in real estate

We May Explore Other Options If You

Are a veteran (VA)
Are buying in a rural area (USDA)
Need more flexible credit guidelines (FHA)
Want to explore down payment assistance

Every buyer's story is different. The goal isn't to fit you into a loan. The goal is to find the loan that fits your life.

Pull Up a Chair

If you've made it this far, you're not just comparing loan programs.

You're trying to make a confident financial decision. That's exactly where I can help.

Whether you're buying your first home, upgrading for more space, investing, or planning your next chapter, we'll compare your options together and build a mortgage strategy that fits your goals — not someone else's.

No pressure.

No confusing mortgage jargon.

Just an honest conversation around the kitchen table.

Get Pre-Approved Talk With Corie

Continue Exploring

Related kitchen table guides.

Buying a Home

Conventional Loans.

What is a conventional loan?

Why buyers choose conventional financing.

Frequently asked questions.

Is a conventional loan right for you?

If you've made it this far, you're not just comparing loan programs.

Related kitchen table guides.

FHA Loans

VA Home Loans

USDA Home Loans

Down Payment Assistance

How Much Cash Do You Really Need to Buy a Home?

Building Your First Home