CONVENTIONAL LOANS
One of the most common loan options—and often the best option if you qualify.
A conventional loan isn't backed by the government, which means lenders set their own guidelines. In practice that means a little more flexibility on the property side and fewer restrictions on how you use the home.
If you have solid credit and a reasonable down payment, a conventional loan is usually where we start the conversation.
What you generally need:
Credit score of 620 or higher (better rates with 700+)
Down payment as low as 3% for first-time buyers, 5% for repeat buyers
Debt-to-income ratio under 45% in most cases
PMI required if you put less than 20% down — but it can typically be removed once you build enough equity
Good fit for: Buyers with good credit who want competitive rates, flexibility on property type, and a straightforward path to removing mortgage insurance over time.
Different lenders treat conventional loans slightly differently, which is where comparing options can really matter.