Conventional Loans. Flexible Financing for Every Buyer.
Explore conventional mortgage financing with competitive rates, flexible terms, and down payments as low as 3% for qualified buyers.
Conventional Loans. Flexible Financing for Every Buyer.
Explore conventional mortgage financing with competitive rates, flexible terms, and down payments as low as 3% for qualified buyers.
Understanding Conventional Home Loans
A conventional loan is a mortgage not insured or guaranteed by a government agency such as the FHA, VA, or USDA. Conventional loans are offered by private lenders and typically follow guidelines set by Fannie Mae and Freddie Mac.
With down payments as low as 3% for qualified buyers and a range of term options, conventional financing is one of the most popular paths to homeownership for buyers with solid credit and stable income.
At Affordable Home Loans, we help you compare conventional programs from multiple lenders so you can find the option that best fits your financial situation and long-term goals.
Why Consider a Conventional Loan?
Low Down Payment Options
Qualified buyers may be eligible for down payments as low as 3% on primary residences.
Flexible Property Types
Finance primary residences, second homes, and investment properties with eligible programs.
PMI Removable
Private mortgage insurance on conventional loans can generally be removed when you reach sufficient equity.
Conforming & Jumbo Options
Access both conforming loans within loan limits and jumbo loans for higher-value properties.
Competitive Rates
Conventional loans often offer competitive interest rates for qualified borrowers.
Gift Funds Allowed
Eligible gift funds may help qualified borrowers cover down payment and closing costs.
What Does It Take to Qualify?
Down Payment
Conventional loans may allow as little as 3% down for qualified first-time buyers on primary residences. Larger down payments may be required for second homes and investment properties.
Credit
A minimum credit score is required, typically 620 or higher, though requirements vary by lender and program. A stronger credit profile can improve your rate and terms.
Income & Employment
Borrowers must demonstrate stable qualifying income and employment history under applicable underwriting guidelines.
Debt-to-Income Ratio
Your monthly debt obligations are evaluated against qualifying income. Acceptable ratios depend on the program and underwriting findings.
Private Mortgage Insurance
PMI is generally required when the down payment is less than 20%. Unlike some government-backed programs, conventional PMI can typically be removed once you reach sufficient equity.
Occupancy
Conventional loans are available for primary residences, second homes, and investment properties, with requirements varying by occupancy type.
Loan Limits
Conforming loan limits are set by county and updated annually. Loans exceeding these limits are considered jumbo loans with different guidelines.
Conventional or FHA? Let's Compare.
| Feature | Conventional | FHA |
|---|---|---|
| Minimum Down Payment | As low as 3% for qualified buyers | As low as 3.5% for eligible borrowers |
| Credit Qualification | Generally 620+ | More flexible; scores from 580+ |
| Mortgage Insurance | PMI; removable at sufficient equity | Upfront + annual MIP; duration varies |
| Primary Residence | Primary, second home, or investment | Required for purchase financing |
| Property Types | Broader property-type flexibility | 1–4 unit eligible properties meeting FHA standards |
| Loan Limits | Conforming or jumbo limits apply | FHA county limits apply |
| Long-Term Costs | PMI removable; may lower long-term cost | MIP may add long-term cost for some |
Minimum Down Payment
Credit Qualification
Mortgage Insurance
Primary Residence
Property Types
Loan Limits
Long-Term Costs
The right mortgage isn't always the one with the lowest advertised rate. It's the one that makes the most sense for your financial situation and long-term goals.
What Could 5% Down Look Like?
This is a down payment illustration only. Closing costs, prepaid expenses, private mortgage insurance, and other transaction costs are additional unless covered by permitted assistance, credits, or financing arrangements.
Your Path to a Conventional Home Loan
Let's Connect
Discuss goals, finances, and available financing options.
Apply & Review
Complete the application and provide required documentation.
Get Pre-Approved
Review available financing and obtain a pre-approval when eligible.
Find Your Home
Work with your Realtor and move forward with the purchase contract.
Underwriting & Closing
Complete appraisal, underwriting, remaining conditions, and closing.
Conventional Loan Questions, Answered.
A conventional loan is a mortgage not insured or guaranteed by a government agency. Conventional loans typically follow guidelines set by Fannie Mae and Freddie Mac and are offered by private lenders.
Qualified first-time buyers may be eligible for as little as 3% down on a primary residence. Larger down payments may be required for second homes and investment properties.
A minimum credit score is typically required, often 620 or higher, though requirements vary by lender and program. A stronger credit profile can improve your rate and terms.
PMI is generally required when your down payment is less than 20%. Unlike some government-backed programs, conventional PMI can typically be removed once you reach sufficient equity.
Yes. Conventional loans are available for primary residences, second homes, and investment properties, with down payment and qualification requirements varying by occupancy type.
Conforming loans fall within loan limits set by county and updated annually. Loans exceeding these limits are considered jumbo loans and follow different guidelines.
Yes. Eligible gift funds may help qualified borrowers cover down payment and closing costs, subject to program requirements and documentation.
It depends on your down payment, credit profile, occupancy plans, and long-term goals. We can help you compare both options side by side to find the best fit.
More Options. More Guidance. A Better Mortgage Experience.
- Access to multiple wholesale lending partners.
- Personalized comparisons across available programs.
- Transparent explanations of interest rates, fees, and closing costs.
- Complimentary mortgage consultations.
- Initial soft-credit review when available and appropriate.
- No AHL Section A origination, processing, underwriting, application, or administrative charges on eligible regular loan programs, subject to actual loan terms and applicable exceptions.
- Personal guidance from consultation through closing.
Your Homeownership Journey. Starts Here.
Whether you're buying your first home or exploring a new opportunity, we're here to help you understand your conventional loan options and move forward with confidence.