The Flexible Choice
The most popular home financing option in America. Flexible terms, competitive rates, and the traditional mortgage solution trusted by millions of borrowers.
Traditional financing with flexible terms and competitive rates
Conventional loans are traditional mortgages not backed by government agencies like FHA, VA, or USDA. They offer the most flexibility and are ideal for borrowers with good credit and stable income. As the backbone of American home financing, they represent over 75% of all mortgage originations.
As low as 3% down for qualified first-time buyers.
Traditional lending with competitive market rates.
Primary homes, second homes, and investment properties
Conventional loans offer flexibility with competitive requirements for qualified borrowers.
Understanding loan limits helps determine which conventional loan type fits your purchase price and property type.
Understanding PMI helps you make informed decisions about down payments and monthly costs.
PMI protects the lender if you default on the loan
0.3% to 1.5% of loan amount annually, paid monthly
PMI could range from $100-$500 per month
PMI automatically cancels when you reach 78% loan-to-value
Request cancellation at 80% LTV with property appraisal
Refinance to eliminate PMI if home value increased
| Loan Details | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Purchase Price | $500,000 | $500,000 |
| Loan Amount | $400,000 | $400,000 |
| APR | 6.75% | 6.25% |
| Monthly Payment | $2,594 | $3,444 |
| Total Interest Paid | $533,840 | $219,920 |
| Interest Savings | — | $313,920 |
Get answers to common questions about conventional loans and the application process.
The minimum credit score for a conventional loan is typically 620, but you’ll get better rates with a score of 740 or higher. We work with borrowers across the credit spectrum to find the best conventional loan options.
Conventional conforming loans can go up to $766,550 in most areas, and up to $1,149,825 in high-cost areas like Greater Boston. Loans above these limits are considered jumbo loans with different requirements.
Conventional loans typically require higher credit scores and down payments but offer more flexibility and potentially lower overall costs. FHA loans allow lower credit scores and down payments but require mortgage insurance for the life of the loan.
Yes! Conventional loans can be used for primary residences, second homes, and investment properties. Investment properties typically require a 25% down payment and have slightly higher interest rates.
Most conventional loans close within 30-45 days, but we can often close faster with complete documentation. Our streamlined process and dedicated underwriting team help expedite approvals.
PMI automatically cancels when you reach 78% loan-to-value ratio. You can request removal at 80% LTV with a new appraisal. PMI can also be eliminated through refinancing if your home value has increased significantly.
Join thousands of Texas homeowners who trust Milestone for their mortgage needs
