Conventional · Program overview
Conventional loans.
Conventional loans are often the cleanest long-term option when credit, income, assets, and down payment support the file. Pricing depends heavily on credit score, LTV, property type, occupancy, and whether PMI applies.
The cleanest path when the file fits.
Conventional pricing is built from credit and LTV. The headline rate you see in an ad is rarely the rate that lands on your file — adjustments for credit tier, LTV bucket, property type, and occupancy stack on top.
Where the math supports it, conventional usually wins on total cost over the long run because PMI can be removed once equity reaches the threshold. Nothing on this page is a quote, approval, commitment to lend, or rate lock. Final terms remain subject to verification, underwriting approval, and program guidelines.
Five things to model up front.
Each item below is a planning lens. Specific pricing buckets, PMI removal rules, conforming limits, and program guidelines change — final terms remain subject to verification, underwriting approval, and program guidelines.
When conventional makes sense
Clean credit, documented income, stable employment, and a down payment that supports the LTV the math wants. When the file fits, conventional is often the cleanest long-term option because PMI can be removed and pricing is competitive.
Credit, LTV, PMI, and pricing adjustments
Conventional pricing is built from credit score and LTV. Pricing adjustments stack — credit tier, LTV bucket, property type, occupancy — so the same headline rate can land very differently after the adjustments apply to your specific file.
3% down vs 5% down vs 20% down
Lower down payments add PMI and tighter qualifying. Larger down payments lower the rate and let PMI disappear. The right answer depends on cash on hand, reserves, monthly comfort, and how long you plan to keep the loan.
Primary, second home, and investment
Occupancy changes the pricing sheet. Primary-residence pricing is the most aggressive. Second homes carry adjustments. Investment property carries the largest adjustments and reserve requirements.
Why conventional can beat FHA
On stronger credit and LTVs at or below 80%, conventional often wins on total cost — PMI is avoidable or removable, while FHA's MIP behavior is more persistent. On weaker credit or tighter cash, FHA can win. The math depends on your file.
Structure the file, then price it.
Score the file
Credit tier, income type, assets, down payment, target property, occupancy. The pricing-adjustment stack starts here.
Match down payment to the math
3% / 5% / 10% / 15% / 20% modeled side by side — payment, PMI, cash to close, total cost over the holding window.
Compare conventional vs FHA
Where the file works for both, run them honestly. Sometimes conventional wins on total cost; sometimes FHA does. The right answer depends on credit, cash, and timeline.
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Estimates only. Not a Loan Estimate, not an approval, not a commitment to lend, not a rate lock. Final terms depend on verified credit, income, assets, property, loan program, lock date, lender conditions, and actual third-party fees. The Mortgage Expert · NMLS 2412313 · Equal Housing Opportunity.