What Is a Conventional Loan?

A conventional loan is a mortgage that is not backed by a government agency like FHA, VA, or USDA. These loans follow lending guidelines established by Fannie Mae and Freddie Mac.

 

Conventional loans are commonly used for:

Primary residences
Second homes
Investment properties
New construction homes
Condos and townhomes

Low Down Payment Options
 

Many buyers are surprised to learn that conventional loans may allow down payments as low as 3% for eligible borrowers through programs like HomeReady® and Home Possible®.

This can help buyers purchase sooner while still benefiting from competitive conventional loan terms.

Conventional Loan Requirements
 

Requirements can vary depending on the lender and loan program, but conventional loans typically review:

Credit score
Employment history
Stable income
Debt-to-income ratio
Down payment amount
Cash reserves in some cases


Every borrower scenario is different, which is why reviewing your options with a mortgage professional is important.

Get Help Comparing Conventional Loan Options
 

Choosing the right mortgage is about more than just the rate. We help buyers understand:

Monthly payment options
Cash needed to close
Mortgage insurance differences
Credit impact
Approval strategies
Long-term affordability


Our goal is to help you make a confident and informed decision.

FAQ: Conventional Loans
 

To help you make informed decisions, we've compiled answers to some of the most commonly asked questions.

What credit score do you need for a conventional loan?
 

Credit requirements vary, but stronger credit scores may help borrowers qualify for better rates and lower mortgage insurance costs.

Can I buy a home with 3% down?
 

Do conventional loans require mortgage insurance?
 

Is a conventional loan better than FHA?
 

What are closing costs, and how much should I expect to pay?

Can conventional loans be used for investment properties?
 

Complete The Form Below Now. 

Are you interested in buying a home? Look no further than a local expert.

Name
Phone

By checking this box, I agree by electronic signature to the Electronic Disclosure Consent Agreement; to receive recurring marketing communication from Jose Mejia, including auto-dialed calls, texts, and artificial/prerecorded voice messages (message frequency varies; data rates may apply; reply "STOP" to opt-out of texts or "HELP" for assistance); and to the Terms of Service and Privacy Policy of this website. Consent not required to make a purchase. I understand that I can call to obtain direct assistance.

Other Home Loan Options

1

FHA Home Loan

Learn more about the FHA Goverment Home Loan here. 

2

VA Home Loan

Learn more about the VA Home loan here.

3

Down Payment Assistance Programs

Learn more about Florida Down Payment Assistance Programs here. 

GOOGLE REVIEWS

Lynn Giarrusso

Very helpful and kind smart He was abig help Thank you JOSE MEJA

jules marie

I ended up postponing my home buying experience due to personal reasons, but Jose was super helpful and supportive through the start of the process! Thank you

Juliana Martinez

I ended up postponing my home buying experience due to personal reasons, but Jose was super helpful and supportive through the start of the process! Thank you

GET MORE INFORMATION

Jose Mejia
Jose Mejia

Real Estate Agent | Mortgage Broker

+1(727) 271-6900

326 S Hyde Park Ave, Tampa, FL 33606, USA

Name
Phone*
Message

By checking this box, I agree by electronic signature to the Electronic Disclosure Consent Agreement; to receive recurring marketing communication from Jose Mejia, including auto-dialed calls, texts, and artificial/prerecorded voice messages (message frequency varies; data rates may apply; reply "STOP" to opt-out of texts or "HELP" for assistance); and to the Terms of Service and Privacy Policy of this website. Consent not required to make a purchase. I understand that I can call to obtain direct assistance.