Conventional loans: the workhorse.
A conventional loan is any mortgage that follows Fannie Mae or Freddie Mac guidelines rather than being government-insured. For borrowers with solid credit it is usually the benchmark every other option gets measured against.
Where it shines
Down payments start as low as 3% on some programs, the private mortgage insurance can be removed once you reach enough equity, and it covers primary homes, second homes, and investment properties.
The tradeoff to understand
Qualifying leans harder on credit score and debt-to-income than FHA. A lower score can mean a higher rate or heavier PMI, which is where comparing programs side by side earns its keep.
How I approach it
The payment calculator on this site uses real credit-tier PMI tables for a reason: with conventional loans, the details are the price. I walk the tiers with you before you shop.
FAQ
When does PMI go away?
On a conventional loan you can generally request removal at 80% loan-to-value, and it must end automatically at 78%. That removability is a key difference from FHA.
Is 20% down required?
No — that number is about avoiding PMI, not qualifying. Many conventional buyers put down far less and treat PMI as a temporary cost of getting in sooner.
Program availability, eligibility, and terms vary by borrower, property, and location, and change over time. Educational only — not an offer, approval, or commitment to lend.