Purchase
Conventional loan
A flexible, widely used loan for buyers with steady income and fair-to-strong credit. Mortgage insurance can be removed once you build enough equity.
Typical down payment
3% (typical)
Typical credit guidance
620+ (typical)
Ideal for
Buyers with steady income, credit in the 620s or higher, and a down payment from 3% to 20% or more.
Key benefits
Down payments can start at 3% for eligible first-time buyers
Private mortgage insurance (PMI) can usually be removed once you reach 20% equity
Works for primary homes, second homes and investment properties
Fixed and adjustable-rate options
Requirements
Credit score guidelines usually start around 620
Debt-to-income ratio typically up to the mid-40s, sometimes higher with strong factors
Documented, stable income and assets for the down payment and closing costs
Loan amount within the conforming limit for your county
Guidelines shown are typical examples and vary by lender, program and borrower. They are not a commitment to lend.
Frequently asked questions
Do I need 20% down for a conventional loan?
No. Many buyers put down 3% to 10%. With less than 20% down, you’ll usually pay private mortgage insurance until you build enough equity.
Can I remove PMI later?
In most cases, yes. PMI can typically be canceled once your balance reaches 80% of the home’s original value, and it ends automatically at 78% if your payments are current.
Talk it through with a loan officer
We’ll compare this program with your other options and show the numbers side by side.
Guidelines shown are typical examples for illustration. Requirements vary by lender, program and borrower. Not a commitment to lend.
What borrowers say
Clear checklist, honest timeline, and no pressure. Our conventional loan closed right on schedule.
Chris N.
Conventional loan
Sample review