The most common loan in America. Priced fairly, for once.
Roughly two-thirds of mortgages in the U.S. are conventional loans. They’re also where retail lenders take the biggest margins — because they assume buyers won’t shop. Working with an independent broker means you skip the markup and get wholesale pricing instead.
If you have decent credit and a steady income, this is probably your loan.
A conventional loan is the default mortgage type for most homebuyers. It’s not insured by the government (the way FHA and VA loans are), so the qualifying standards are slightly higher — but the tradeoff is more flexibility and often better long-term cost.
Conventional loans work well if you:
Have a credit score of 680 or higher. The better your score, the better the rate. At 740+ you’re in the top pricing tier with most lenders.
Can put down at least 3% (5% is more common). First-time buyers can sometimes qualify with as little as 3% down. Most buyers put down 5–20%.
Have steady, documentable income. W-2 employment, salary or hourly, with at least two years of consistent history is the easiest fit. Self-employed buyers can absolutely qualify too — we just need different documentation.
Are buying within conforming loan limits. For 2026, that’s up to about $832,750 in most counties, with higher limits in designated high-cost areas. If you’re under the limit, you’re in conventional territory.
Wholesale pricing, honest math, no markup.
Here’s something most borrowers don’t realize: the rate you get from a retail lender isn’t the rate the lender pays for that loan. Banks and online direct lenders mark up wholesale rates to cover their overhead — salaries, benefits, retail branches, massive marketing budgets — before showing you a number.
As an independent broker, I have access to wholesale rates directly from the same lenders. I don’t carry the overhead, so I don’t add the markup. Wholesale lenders also compete with each other to win our business — and that competition keeps margins thin and rates sharp.
Beyond the rate, I work three specific ways:
I shop the market for you. I’m not loyal to any one lender. For every loan, I check pricing across the wholesale lenders I work with and bring you the best fit for your scenario. A retail lender can only offer their one product. I can offer dozens.
I put the math on the table. There’s a real tradeoff between rate and closing costs. You can pay more upfront for a lower rate, or take a lender credit and accept a slightly higher rate. I’ll show you the full spectrum so you can pick what makes sense based on how long you plan to keep the loan.
I partner with low-cost service providers. Title, settlement, appraisal management — I’ve built relationships with vendors who charge fairly. Most brokers don’t shop these because they’re not the ones paying for them. I do, because you are.
Conventional isn’t always the right answer.
I’d rather lose a deal than push the wrong loan. Conventional is the default, but it’s not always the best fit:
If you’re putting down less than 5%, an FHA loan might price out better — especially if your credit score is in the 620–700 range. FHA tends to be more forgiving on credit and offers competitive pricing for low-down-payment buyers.
If you’ve served in the military, a VA loan almost always wins. No down payment required, no monthly mortgage insurance, and rates that are typically very competitive. There’s almost no scenario where conventional beats VA for an eligible borrower.
If you’re self-employed with complex income, conventional underwriting can be tough to navigate. Bank statement loans or other non-QM products may be a better fit. We’d run both options side-by-side.
Before recommending conventional, I’ll look at every alternative and tell you honestly which loan type wins for your specific scenario. If conventional isn’t the best answer, I’ll tell you that.
The questions everyone asks about conventional loans.
What’s the minimum down payment for a conventional loan?
3% if you’re a first-time homebuyer using a program like Fannie Mae’s HomeReady or Freddie Mac’s Home Possible. 5% is the typical minimum otherwise. Putting down 20% lets you skip private mortgage insurance (PMI), which saves you money monthly — but you don’t need 20% to qualify, only to avoid PMI.
What credit score do I need?
Most conventional loans require a minimum credit score of 620, though pricing improves significantly at 680, 700, 720, and 740+. At 740+ you’re in the top pricing tier. Below 700, you may want to compare conventional vs. FHA — sometimes FHA prices better in that range.
Do I have to pay PMI?
If you put down less than 20%, yes — you’ll pay private mortgage insurance until your loan-to-value ratio reaches 78–80%. The good news: PMI is removable. Once you’ve paid down to 78% LTV (or your home appreciates enough to get you there sooner), you can request PMI removal. This is a meaningful difference from FHA loans, where mortgage insurance typically lasts the full life of the loan unless you refinance.
What loan terms are available?
30-year fixed is the most common (and usually the default I recommend for purchase). 15-year fixed has a lower rate and faster payoff but a higher monthly payment. 20-year terms exist too. Some of my lenders also offer odd-year terms (27, 28, 29 years), which can be useful in specific refinance scenarios. Adjustable-rate mortgages (ARMs) are available but rarely the right call for most buyers — I’ll explain when they make sense and when they don’t.
How long does a conventional purchase take to close?
My standard target is 30 days from contract to closing, and most of my purchases hit that window. In Florida and Texas, we can sometimes close in 20–25 days if everyone’s responsive. Pennsylvania tends to run closer to 30–35 days due to how PA handles title and recording. I’ll give you a realistic timeline upfront based on your specific situation.
Let’s see what a conventional loan looks like for your scenario.
Two ways to start. Talk it through with me first if you’d rather have a conversation. Or send me your numbers and I’ll come back with actual pricing — wholesale, not marked up, with the math on the table.
Talk First
Text or email with whatever’s on your mind — house you’re considering, questions about pre-approval, curious how this all works. I’ll respond within one business day. No pressure.
Or Get a Real Quote
Tell me your scenario — purchase price, down payment, FICO range — and I’ll come back with actual numbers based on your situation. No teaser rates, no credit pull until you say so.
Request a Rate Quote →