Conventional Fixed-Rate Loan
Stable, predictable payments for buyers with solid credit and steady income.
How a Conventional Loan Works
A conventional fixed-rate mortgage is the standard for strong buyers. The interest rate and principal-and-interest payment stay the same for the life of the loan, making it easy to budget around your housing costs.
These loans are not insured by FHA, VA, or USDA. Instead, they follow Fannie Mae and Freddie Mac guidelines, which reward borrowers with stronger credit, stable income, and reasonable debt levels.
Who This Loan Is Usually Best For
- First-time or repeat buyers with strong, documented income
- Borrowers with solid credit history and manageable debts
- Primary homes, second homes, and some investment properties
- Buyers who want long-term payment stability
Key Benefits
- Low down payment options, typically starting around 3–5% for qualified buyers
- No upfront mortgage insurance premium
- Mortgage insurance can often be removed once you reach enough equity
- Multiple term options (15, 20, or 30 years) to match your strategy
- Works well for primary, secondary, and some investment properties
What Lenders Look At
- Total debt-to-income ratio (how much of your income goes to monthly debts)
- Credit profile and payment history, not just your score
- Down payment size and reserves after closing
- Property type and intended occupancy (primary, second home, or investment)
Do I really need 20% down?
No. Many buyers put 3–5% down on a conventional loan. Putting 20% down lets you avoid mortgage insurance, but it's not required to buy.
Can I use gift funds for my down payment?
Yes, gift funds are allowed on many conventional scenarios as long as they're documented correctly and meet guideline rules.
When can my mortgage insurance be removed?
Once you reach enough equity (through payments, appreciation, or both), we can look at removing PMI, subject to investor guidelines.