CONVConventional loans
Conventional loans for primary homes, second homes, and rentals
The most common way to buy or refinance a home. Conventional loans follow Fannie Mae and Freddie Mac guidelines, work for nearly any property you plan to live in or rent out, and let you drop mortgage insurance as you build equity.
- Licensed in Arizona
- NMLS #2786915
- Se habla español
Who it's for
Who conventional loans work best for
Buyers with established credit
A strong credit history usually means better pricing and fewer loan conditions.
Second-home and rental buyers
Unlike FHA, VA, and USDA loans, conventional financing isn't limited to the home you live in.
Homeowners ready to refinance
Change your rate or term, take cash out, or refinance out of an FHA loan to drop mortgage insurance.
How it works
How conventional loans work
Conventional loans aren't insured by a government agency. Lenders follow guidelines from Fannie Mae and Freddie Mac, so pricing and approval depend mostly on your credit, down payment, and debts.
Mortgage insurance you can remove
With a smaller down payment, the loan includes private mortgage insurance (PMI). Under federal law you can ask to cancel it once your balance is scheduled to reach 80% of your home's original value, and it ends automatically at 78% if you're current on payments.
Programs for first-time and moderate-income buyers
Fannie Mae and Freddie Mac offer programs with reduced down payment requirements and lower mortgage insurance for eligible buyers. We'll check whether you qualify.
Help from family
For a home you'll live in, family members can usually help with the down payment and closing costs through a documented gift.
Fixed or adjustable
Choose a fixed rate for a payment that doesn't change, or an adjustable-rate mortgage if you expect to sell or refinance within a few years.
Loan limits by county
Loan amounts above your county's conforming limit are jumbo loans, which follow different guidelines.
Document checklist
What you'll need to apply
Check items off as you gather them. Your list is saved on this device.
Blue Reserve Mortgage · Document checklist · Conventional loans
Income
Assets
Identity and property
Compare
Conventional vs. FHA at a glance
| This programConventional | FHA | |
|---|---|---|
| Credit | Rewards strong credit with better pricing | More flexible with lower scores and past credit events |
| Mortgage insurance | PMI can be removed as you build equity | Upfront and annual premiums that can last the life of the loan |
| Property use | Primary, second home, or investment | Primary residence only |
| Property condition | Standard appraisal | Must meet FHA minimum property standards |
Program availability and guidelines vary by lender and are subject to change. This is not a commitment to lend.
Questions
Common questions
What credit score do I need for a conventional loan?
Minimum scores are set by Fannie Mae, Freddie Mac, and each lender, and they change over time. Higher scores generally get better pricing. Tell us about your situation and we'll show you where you stand.
How do I get rid of PMI?
You can ask your servicer to cancel PMI once your balance is scheduled to reach 80% of your home's original value, as long as you're current and meet their requirements. It ends automatically at 78%. Depending on your servicer, a new appraisal after your home gains value may help you remove it sooner.
Can I use a conventional loan for a rental property?
Yes. Conventional loans can finance investment properties, though credit, reserve, and down payment requirements are stricter than for a home you live in. If you'd rather qualify using the property's rent, look at DSCR loans.
Is a conventional loan better than FHA?
It depends on your credit, down payment, and plans. We'll price both side by side so you can compare the full cost, including mortgage insurance, not just the rate.
Talk to a loan officer
Let's price your conventional loan
Share a few details and a loan officer will compare conventional options from multiple lenders.
- We compare multiple wholesale lenders for you
- English or Spanish, from application to closing
- No cost to ask questions
Prefer to talk? Call
928-750-6064Or choose a loan officer