PMI Can Be Removed
Unlike government-insured loans, where mortgage insurance often lasts for the life of the loan, private mortgage insurance (PMI) on a conventional loan can be removed once you reach sufficient equity.
Agency-eligible conventional financing
Conventional Home Loans: How to Qualify for Lower Interest Rates
Conventional loans offer agency-eligible financing that meets Fannie Mae and Freddie Mac guidelines. They aren't government-insured, and they're structured to reward borrowers with strong credit and a meaningful down payment.
No upfront government MIPPMI removable at equity milestonesLow down payment options
Licensed mortgage broker · Answer Home Loans, Inc. NMLS #1729528
Conventional loan profile
What lenders reward
Credit profile
Stronger credit
Typically means better pricing and lower PMI cost
Equity over time
PMI periodPMI removed
PrimarySecond homeInvestment
- Fannie Mae & Freddie MacAgency-eligible guidelines
- Multiple LendersConventional options compared
- Clear Loan OptionsSide-by-side program review
- Licensed BrokerNMLS #1729528
Why conventional
The Case for Agency-Eligible Financing
Conventional loans aren't government-insured, and for the right borrower that distinction unlocks real advantages in cost, flexibility, and long-term value.
Flexible Across Property & Occupancy Types
Conventional financing can be used for primary residences, second homes, and investment properties, a wider range than most government-backed programs allow.
Better Pricing for Strong-Credit Borrowers
Borrowers with strong credit and a meaningful down payment typically qualify for better pricing, which makes conventional financing especially efficient for those who qualify.
Eligibility
Built for Borrowers with Strong Credit.
Conventional financing rewards borrowers who bring solid credit history, reliable documentation, and a meaningful down payment, across a wide range of buyer profiles.
First-Time Homebuyers with Solid Credit
Low down payment options are available for eligible borrowers, with PMI that can be removed as your equity grows.
Move-Up Buyers
Use built-up equity and an established credit profile to access conventional pricing on your next home.
Second-Home Buyers
Conventional financing supports second-home purchases, which most government-backed programs don't allow.
Real Estate Investors
Agency-eligible conventional loans are a widely used financing tool for acquiring investment properties.
Borrowers with a Meaningful Down Payment
A larger down payment can improve pricing, help you avoid PMI entirely, and reduce the overall cost of the loan.
Borrowers Who Want PMI to Go Away Over Time
Unlike government-insured programs, PMI on a conventional loan isn't permanent. Once you reach the required equity, it can be removed.
The process
A Simple Path to Your Loan.
Three clear steps from your first conversation to an approved conventional loan, with no surprises and no guesswork.
- 1
Tell Us About Your Homebuying Goals
Share the basics: property use, estimated purchase price, and where you stand on credit and down payment. We'll take it from there.
- 2
We Review Your Options and Pricing
We confirm you're within the conforming loan limit for your county and present conventional loan options with transparent pricing.
- 3
Get Pre-Approved and Move Forward
Receive your pre-approval and move into the purchase or refinance process with clarity on your loan.
Use cases
One Loan Type, Many Possibilities.
Agency-eligible conventional financing isn't limited to primary home purchases. Here's where it applies.
Primary Residence Purchase
The most common use for conventional, agency-eligible financing.
Second Home Purchase
Finance a vacation or retreat property with conventional terms, which most government programs don't offer.
Investment Property Purchase
Grow your real estate portfolio with conventional financing for investment acquisitions.
Rate-and-Term or Cash-Out Refinance
Change your rate or term, or tap equity, within Fannie Mae and Freddie Mac guidelines.
FAQ · Conventional loans
Frequently Asked Questions About Conventional Loans
Straightforward answers about down payments, mortgage insurance, and qualifying for conventional financing.
What is a conventional loan?
A conventional loan is a mortgage that meets Fannie Mae and Freddie Mac guidelines and is not insured or guaranteed by a government agency. Because it isn't government-insured, it typically requires stronger credit and documentation than government-backed programs, but it rewards qualified borrowers with competitive pricing and more flexibility in how the loan can be used.
How much down payment do I need for a conventional loan?
Low down payment options are available for qualified borrowers, and the minimum depends on the program, occupancy, and your credit profile. A larger down payment typically improves your pricing and lowers your loan-to-value ratio, and with enough down you can avoid private mortgage insurance (PMI) altogether. A loan officer can show you the options for your situation.
Can I remove private mortgage insurance (PMI) on a conventional loan?
Yes. Once you reach sufficient equity in the home, PMI on a conventional loan can typically be removed. This is a key advantage over government-insured loans, where mortgage insurance often remains for the life of the loan regardless of how much equity you've built.
Can I use a conventional loan for a second home or investment property?
Yes. Conventional financing can be used for primary residences, second homes, and investment properties. This occupancy flexibility is a key advantage over government-backed programs like FHA, VA, and USDA loans, which are generally limited to owner-occupied primary residences.
What credit score do I need for a conventional loan?
Many lenders look for a minimum credit score around 620 for conventional financing, though the exact requirement varies by lender and program. A higher score typically means better pricing and can reduce PMI costs. Borrowers closer to the minimum can still qualify but may face stricter requirements on down payment or reserves.
Conventional loans offer agency-eligible financing for a wide range of borrowers, from first-time buyers to those who need high-balance amounts above standard limits. Loan limits and program guidelines are subject to change. Consult a licensed mortgage professional for current county limits and personalized rate information.
Check My RateExample scenarios
Where Conventional Financing Fits
Renters Ready to Buy Their First Home
Illustrative example, not an actual client.
A couple with solid credit and steady savings were ready to stop renting. A conventional loan could pair a low down payment with a clear plan for removing PMI as their equity grows.
Timelines, rates, and terms vary by lender and borrower profile.
Owners Buying a Weekend Retreat
Illustrative example, not an actual client.
Homeowners wanted a second home for weekends away. Most government programs don't finance second homes, so a conventional loan would be the natural fit.
Timelines, rates, and terms vary by lender and borrower profile.
Investor Adding a Rental
Illustrative example, not an actual client.
An investor with a strong credit profile was buying another rental property. An agency-eligible conventional loan could finance it within established Fannie Mae and Freddie Mac guidelines.
Timelines, rates, and terms vary by lender and borrower profile.
Conventional loan inquiry
Check Your Rate on a Conventional Loan Today.
Strong credit and a meaningful down payment deserve competitive, agency-eligible financing. Tell us about your goals and we'll match you with conventional loan options that fit your profile.
Not government-insured, with no upfront MIP
PMI removable, unlike most government-insured programs
Available for primary, second home, and investment use
Up to the conforming loan limit for your county
Answer Home Loans, Inc. · NMLS #1729528 · DRE #02058505