Conventional loans: the most common way to buy a home
A conventional loan is not backed by a government agency. With good credit it is often the lowest-cost option, and the mortgage insurance can come off once you have enough equity.
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The basics
- From 3% down for many first-time buyers, and from 5% for others
- A credit score around 620 or higher is usually needed
- Private mortgage insurance applies below 20% down
- Primary homes, second homes and rental properties can all qualify, with different down payments
Removing mortgage insurance
On a conventional loan you can ask to cancel private mortgage insurance once you owe 80% of the home's original value, and it ends automatically at 78% if your payments are current. That is the main difference from an FHA loan, where the insurance usually stays.
Conventional or FHA?
With a strong score and a few percent down, conventional usually costs less over time. With a lower score or a past credit problem, FHA can come out ahead. Stella compares both on your numbers before you decide.
Common questions
Do I need 20% down?
What is a conforming loan?
Talk it through with Stella
Send her a short note or call (918) 395-9200. No credit check until you say so.
Programs are subject to eligibility, underwriting and lender guidelines; not all applicants will qualify. Nothing on this page is a commitment to lend or a rate quote. Raystar Mortgage Group Inc, NMLS 305952. Stella Courtney, NMLS 307689. Equal Housing Lender.