Most common
Conventional loans: flexible terms for many buyers.
Conventional loans are not insured by a government agency and are the most common type of mortgage. They work for primary homes, second homes, and investment properties, with a range of down payment and term options.
Talk with Dan about conventional loansMay be a good fit if…
- You have steady income and established credit.
- You want mortgage insurance that can be removed later.
- You are buying a second home or investment property.
What to know about conventional loans
Down payment options
Some programs allow as little as 3% down for qualifying buyers. Putting 20% down avoids private mortgage insurance.
Removable PMI
Private mortgage insurance can be cancelled on request once you reach 20% equity, and ends automatically at 22% equity based on the original schedule.
Fixed or adjustable
Choose a fixed rate for a steady principal-and-interest payment, or an adjustable rate whose payment can change after an initial period.
Questions worth asking
- How does my down payment change my PMI and monthly payment?
- Is a 15-year or 30-year term a better fit for my goals?
- What is the conforming loan limit where I am buying?
Frequently asked questions
What is the difference between FHA and conventional loans?
FHA loans are government-insured and have more flexible credit guidelines, but mortgage insurance often lasts longer. Conventional loans usually reward stronger credit and let you remove PMI once you build enough equity.
Can I avoid PMI on a conventional loan?
Yes, by putting at least 20% down. With less down, PMI can be cancelled later once you reach 20% equity.
Can I use a conventional loan for a rental property?
Yes. Conventional loans can finance investment properties, usually with a larger down payment than a primary residence.
Related reading
Your next step
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Dan The Truong, NMLS ID 2115125. Information is for educational purposes only and is not a commitment to lend or an offer to extend credit. Eligibility, rates, and terms depend on credit, income, property, and underwriting, and may change without notice. Loans are offered only in states where Dan The Truong is licensed — see NMLS Consumer Access.