Loan Options
Conventional Loans
“The most common path to homeownership.”
A conventional loan is a mortgage that isn't backed by a government agency like the FHA or VA. It's the most common type of home loan and can be used for primary homes, second homes, and investment properties. For qualified borrowers, a conventional loan may allow a down payment as low as 3%.
Who it may be a good fit for
- Buyers with solid credit and steady, documentable income
- Anyone who wants to avoid ongoing mortgage insurance once they reach about 20% equity
- Buyers of a primary residence, second home, or investment property
Key things to know
- Private mortgage insurance (PMI) usually applies with less than 20% down, and can often be removed later once you reach roughly 20% equity
- Your rate and terms depend on your credit, income, down payment, and the property
- Available as fixed-rate or adjustable-rate, over a range of terms
What you'll typically need
- Recent pay stubs and W-2s (or business/tax returns if self-employed)
- Bank and asset statements
- Photo ID and information about your monthly debts
Curious what the monthly payment might look like? Try my free mortgage calculator.
Last reviewed: July 2026. This page is general education, not a loan approval or commitment to lend; program details vary by lender and can change. Learn more from Consumer Financial Protection Bureau.
Good to Know
Conventional Loans FAQs
How much do I need to put down on a conventional loan?
For qualified borrowers, some conventional programs allow as little as 3% down. A larger down payment can mean a lower monthly payment and lets you avoid PMI at about 20% equity.
Can I remove PMI later?
Often, yes. Once you reach roughly 20% equity, conventional mortgage insurance can typically be removed — which is different from some government-backed loans.
Can I use a conventional loan for an investment property?
Yes. Conventional financing can be used for primary homes, second homes, and investment properties, though terms vary by occupancy.
See why so many homebuyers trust Stef with their home financing.
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