The Most Common Path

Conventional loans — flexible, and often misunderstood.

Not backed by a government agency, but still the loan most buyers end up using. More down payment flexibility than people expect, and mortgage insurance that actually goes away — unlike some alternatives.

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Key Facts

Understanding conventional loans, before you apply.

Six things worth knowing up front — no fine print you have to dig for.

Not Government-Backed

Unlike FHA or VA loans, conventional loans aren't insured by a government agency — they follow guidelines set by Fannie Mae and Freddie Mac instead, which is part of why they're the most widely available loan type.

Down Payment Flexibility

Down payments can go as low as 3% for qualified buyers, though 5% and 10% are also common. Put down 20% and you avoid mortgage insurance altogether.

PMI Actually Goes Away

If you put down less than 20%, you'll carry Private Mortgage Insurance (PMI) — but unlike FHA's MIP, PMI cancels automatically once you reach 78% loan-to-value, and you can often request removal even sooner, at 80%.

Credit Matters More Here

Conventional guidelines are generally stricter on credit than FHA. Your exact rate and terms are more sensitive to your credit score, so a stronger score tends to pay off more directly.

Conforming Loan Limits

Conventional loans follow annual loan limits set by the FHFA, which vary by county. Borrow above that limit and you're generally looking at a Jumbo loan instead.

Most Flexible on Occupancy

Conventional loans can finance primary residences, second homes, and investment properties — more flexibility on property use than most government-backed programs allow.

Try It Yourself

Conventional Loan & PMI Calculator

See the full monthly picture — principal, interest, PMI (if applicable), taxes, insurance, and HOA — not just a partial number.

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Down Payment 20% or more avoids PMI entirely

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Estimated Results

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Loan Amount—

Estimated PMI—

Est. Monthly Payment (Total)—

Estimate only. PMI rates vary by credit score and lender and typically range roughly 0.3%–1.5% annually — I'll confirm your exact rate together. PMI automatically drops at 20% down.

Go Deeper

A couple more things worth knowing.

How PMI Removal Actually WorksThe part that surprises people coming from an FHA loan

PMI isn't forever, and you don't have to refinance to get rid of it. By law, your lender must automatically cancel PMI once your loan balance hits 78% of your home's original value, as long as you're current on payments.

You can often request removal even earlier, once you reach 80%, by contacting your servicer — sometimes with a new appraisal if your home's value has risen. This is the single biggest structural difference from FHA's MIP, which often lasts the life of the loan if you put down less than 10%.

Conventional vs. FHA — A Quick Gut-CheckTwo common paths, and how to think about which fits

If your credit is strong and you can put down at least 5%, conventional often ends up cheaper over time, mainly because PMI goes away and stays away once you cross 20% equity.

If your credit needs some room to grow, or your down payment is tighter, FHA's more flexible guidelines can make it the more accessible path today — even though its mortgage insurance sticks around longer. There's no universal right answer here; it depends on your specific numbers.

Myths vs. Facts

Conventional Loan Myths vs. Facts

Common misconceptions about conventional loans, corrected one at a time.

Myth: You need 20% down for a conventional loan

Myth

Conventional loans always require putting 20% down, which puts them out of reach for a lot of buyers.

Truth

Qualified buyers can put down as little as 3%. 20% simply avoids PMI — it's not a requirement to get the loan in the first place.

Myth: PMI lasts for the life of the loan

Myth

Once you're paying PMI, you're stuck with it for as long as you have the loan.

Truth

PMI on a conventional loan automatically cancels at 78% loan-to-value by law, and can often be requested even earlier at 80%. This is different from FHA's MIP, which can last the life of the loan depending on your down payment.

Common Questions

Frequently asked, honestly answered.

What credit score do I need?

Conventional guidelines tend to be stricter than FHA's, and your exact rate is more sensitive to your score. I'll review your specific credit picture with you directly rather than quoting a generic minimum that may not reflect your actual options.

Can I use a conventional loan for an investment property?

Yes — conventional loans are the most flexible option for occupancy type, covering primary residences, second homes, and investment properties, though terms and down payment requirements shift depending on which one applies.

Is conventional or FHA better for me?

It depends on your credit and how much you're putting down — there's no universal answer. If your credit is strong and you can put at least 5% down, conventional often costs less over time. If you need more flexibility on credit or down payment, FHA may be the more accessible path. I'll run your actual numbers both ways so you can see it directly.

What happens if my home's value goes up — can I remove PMI sooner?

Often, yes. If your home has appreciated, you may be able to request PMI removal once you reach 80% loan-to-value based on a new appraisal, rather than waiting to pay your balance down to that point.

Get In Touch

Let's see what fits your numbers.

No pressure, no jargon — just a real conversation about your options.

(903) 636-7651

viola@violahomeloans.com