A conventional loan that rewards your credit and lets PMI fall off.
Conventional financing isn't just for 20%-down buyers. With Conventional 97, HomeReady, or Home Possible you can get in with as little as 3% down — and unlike FHA, the mortgage insurance can be removed once you build 20% equity. We'll find the cheapest version for your situation, in English or Spanish.
Who this is for
- Buyers with solid credit who want mortgage insurance that can drop off later
- First-time buyers using a 3%-down program like HomeReady or Home Possible
- Move-up buyers putting down 5%, 10%, or 20%
- People buying a condo, townhome, or 2–4 unit who want a non-FHA option
How to apply for a conventional loan
Find the conventional that fits
We look at your credit, income, and savings to see whether a standard 5%-down loan, a 3%-down Conventional 97, or an income-based HomeReady or Home Possible loan is the cheapest path for you.
Get pre-approved
Send a few documents and we issue a pre-approval letter so you can shop and make offers with confidence.
Compare the real cost
We show you the rate, the monthly PMI, and roughly when it can come off — side by side with FHA so you can see which one actually costs less.
Close and build equity
We coordinate the appraisal, underwriting, and signing. As you pay down the loan and values rise, your PMI can be removed once you reach about 20% equity.
Low down payment, your way
Put 3% down with Conventional 97, HomeReady, or Home Possible, 5% on a standard loan, or more to lower the payment — your call.
PMI that doesn't last forever
Unlike FHA, conventional mortgage insurance falls off once you reach about 20% equity, so the monthly cost can drop over time.
Rewards stronger credit
Conventional pricing tends to reward good credit with a better rate, and there's no upfront mortgage insurance premium to finance.
Fits more property types
Single-family homes, warrantable condos, townhomes, and 2–4 unit properties you live in can all work on a conventional loan.
Today's sample conventional loan rates
Common questions
How little can I put down on a conventional loan?
As little as 3% through Conventional 97, HomeReady (Fannie Mae), or Home Possible (Freddie Mac), or 5% on a standard conventional loan. HomeReady and Home Possible are built for low-to-moderate-income buyers and often price better, but they have income limits. We'll check which one you qualify for and which is actually cheaper.
What's the difference between HomeReady, Home Possible, and Conventional 97?
All three let qualifying buyers put down 3%. HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are income-based programs that usually come with reduced mortgage insurance and better pricing when your income is at or below the area limit. Conventional 97 is the fallback 3%-down option when your income is too high for those. We run all three and show you the lowest payment.
When does the PMI come off a conventional loan?
It isn't permanent. Conventional mortgage insurance automatically ends once your balance reaches about 78% of the original value, and you can usually request removal earlier at around 20% equity. That's a key difference from FHA, where the mortgage insurance often stays for the life of the loan.
What credit score do I need for a conventional loan?
Most conventional approvals start in the low-to-mid 600s, and stronger credit earns a better rate and lower PMI. If your score isn't there yet, an FHA loan may fit better for now — we'll compare both honestly instead of forcing one.
What property types can I buy with a conventional loan?
Conventional financing is flexible: single-family homes, warrantable condominiums, townhomes and PUDs, and 2–4 unit buildings where you live in one unit. Second homes and investment properties qualify too, usually with a larger down payment. Condos need to be warrantable (the HOA and building have to meet guidelines), and manufactured homes are possible through specific programs. We'll confirm what the lender will approve for the exact property before you write an offer.