Nate Moghadam  ·  NMLS #906770  ·  Fairway Independent Mortgage

Conventional Loans
Flexible. Competitive. No Upfront MIP.

Conventional loans are the most widely-used mortgage program for buyers with solid credit. Competitive rates, no upfront mortgage insurance, and options for primary homes, second homes, and investment properties.

Start Your Pre-Approval Ask Nate a Question
Available in 14 States
10+ Years Experience
5-Star Rated
Conventional Loans

What Is a Conventional Loan?

A conventional loan is any mortgage not backed by the federal government — meaning it's not FHA, VA, or USDA. Because there's no government guarantee, lenders set slightly stricter credit and income standards, but in return you get more flexibility on property types, loan amounts, and the ability to eliminate mortgage insurance entirely.

Conventional loans are available as fixed-rate or adjustable-rate mortgages, in loan terms from 10 to 30 years. They can be used to finance primary residences, second homes, and investment properties — making them the most versatile mortgage product on the market.

If your credit score is 740+ and you can put 20% down, a conventional loan will almost always give you the lowest total cost. But even at 3% down, conventional can beat FHA for buyers with strong credit once you factor in MIP savings.

3%Min Down Payment
No Set MinCredit Score
14States Available
30 yrMax Term

Interested in a Conventional Loan?

Talk to Nate for free — he'll compare conventional vs. FHA side-by-side and tell you exactly which saves you more.

Book a Free Call Start Pre-Approval
(617) 945-3632 nate@nateloans.com

Nate Moghadam · NMLS #906770
Fairway Independent Mortgage Corp · NMLS #2289
Equal Housing Lender

The Details

Conventional Loan Requirements & Benefits

Basic Requirements

  • Credit score: No set minimum; best rates at 740+
  • Down payment: 3% (first-time buyers) or 5% (repeat buyers); 20% to avoid PMI
  • Debt-to-income ratio: Typically 43–50% max DTI
  • Employment history: 2-year employment history standard
  • Property types: Primary, second home, or investment property
  • Loan limits: Up to conforming limits ($832,750 in most areas for 2026)

Why Choose a Conventional Loan?

  • No upfront mortgage insurance fee: Unlike FHA loans, conventional loans have no upfront FHA mortgage insurance (MIP) added to your loan
  • PMI removable: Mortgage insurance drops off automatically at 20% equity
  • Investment properties: Can finance rentals and second homes — FHA can't
  • Flexible terms: 10, 15, 20, or 30-year fixed; ARM options available
  • Lower long-term cost: For buyers with strong credit, often cheaper over the life of the loan
  • Fewer property restrictions: More flexible than FHA on property condition

Who Is a Conventional Loan Best For?

  • Buyers with solid credit, especially those at 720+
  • Buyers who can put 20% down and want to avoid PMI completely
  • Repeat buyers purchasing a second home or investment property
  • Buyers who want to minimize total long-term mortgage cost
  • Buyers in higher-priced markets up to conforming loan limits

How Nate Helps

  • Compares conventional vs. FHA with real numbers for your situation
  • Finds the best rate and term for your financial goals
  • Issues a strong pre-approval letter, often within 1 business day
  • Handles investment property and second home transactions
  • Direct access — call or text Nate, no call centers
Conventional Loan Coverage

Available in All 14 of Nate's States

CACalifornia
COColorado
FLFlorida
MEMaine
MDMaryland
MAMassachusetts
NHNew Hampshire
NJNew Jersey
NCNorth Carolina
PAPennsylvania
RIRhode Island
TNTennessee
TXTexas
VAVirginia
Common Questions

Conventional Loan FAQs

Straight answers to the most common conventional mortgage questions.

As low as 3% for first-time buyers through programs like Fannie Mae's HomeReady or Freddie Mac's Home Possible. Repeat buyers typically need at least 5%. Putting 20% down eliminates PMI entirely, which can save you hundreds per month.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It typically costs 0.5–1.5% of the loan amount annually. The good news: on conventional loans, PMI automatically cancels when you reach 20% equity based on the original purchase price, and lenders must remove it at 22% equity by law. You can also request removal once you hit 20% equity.
The main differences: Credit requirements — conventional has no set minimum credit score (FHA accepts 580+), but lenders typically want to see solid credit for the best terms. Mortgage insurance — FHA charges an upfront FHA mortgage insurance fee (called MIP) that conventional loans don't have; FHA mortgage insurance often lasts the life of the loan while conventional PMI can be removed at 20% equity. Property use — conventional allows investment properties and second homes; FHA is primary residence only. Nate will run both scenarios for you so you can see the real monthly payment and total cost difference.
Yes — conventional loans can be used for investment properties (typically requiring 15–25% down) and second homes (typically 10% down). FHA and VA loans are restricted to primary residences, making conventional the go-to choice for real estate investors and those buying a vacation property.
For 2026, the baseline conforming loan limit is $832,750 for a single-family home in most U.S. counties. High-cost areas (parts of California, New York, etc.) have higher limits. Loans above the conforming limit are considered jumbo loans and have different requirements — learn about jumbo loans here.
Apply online in about 10 minutes and Nate will review your file and get back to you fast. Or book a free 15-minute call to talk through your situation first — no pressure, no obligation.

Ready to explore a Conventional Loan?

Talk to Nate directly — no forms, no call centers, no runaround.

Book a Free Call Get Pre-Approved