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.

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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

Valeria Santolo

Hands down a great team to work with. We made a big move for our family moving from out of state to Florida. Jose’s approach on educating you through the whole process and making sure we were well informed was extremely helpful. I do believe he goes above and beyond to help people. Also it felt like we had the dream team on our side during this process between our Realtor Jules and Jose and Lien we were in such great hands. From the bottom of my heart thank you Jose for your expertise, professional , and kindness as we became Floridians! I hope other families get to experience the “dream team”!

Marieliz Cruz

We want to express our sincere gratitude to Jose Mejias for the outstanding service he provided on both the real estate and financing sides of our home purchase. His knowledge, professionalism, and dedication made the entire process seamless from beginning to end. Jose guided us through finding and purchasing our property while also helping us navigate the financing process with confidence. He was always available to answer our questions, explain our options, and ensure everything stayed on track. Thanks to his expertise and hard work, we were able to close on our new home in just 3 weeks. His attention to detail, communication, and commitment to our success made all the difference. We highly recommend Jose Mejias to anyone looking for a professional who can provide exceptional support in both real estate and financing. Thank you for helping us achieve our dream of homeownership and for making the experience smooth, efficient, and stress-free.

Amber Lee

Jose is wonderful to work with and someone who genuinely cares about the best interests for the buyer in all aspects. I have worked with him through multiple deals and his expertise has guided my buyers through all types of situations. He was able to provide guidance from beginning to close and made sure we understood every step along the journey. I highly recommend working with Jose.

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Jose Mejia
Jose Mejia

Real Estate Agent | Mortgage Broker

+1(727) 271-6900

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

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Phone*
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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.