Conventional Loans

What is a Conventional Loan?

If you are looking to buy a home, chances are you are looking into financing it as well. You have probably also realized that you have many options as to which program you may want to use. With so many options you will need the help of a Loan Officer to advise you which program is the best fit for you. Click the button below to get pre-approved in minutes and a Loan officer will contact you Live.


Loan Requirements

Here's what you need to get started.

620 Credit Score

The minimum credit score is 620

Minimum of 2 Year Employment History

At least a 2 year work history is required, this is standard for any loan program. The 2 years do not have to be with the same company it is okay if you switched jobs as long as you have 2 years of employment. 


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Conventional Information

  • Down Payment: The down payment can vary between 3-5% on a single family home and if you are a first time homebuyer or not. 
  • Debt-to-Income: The debt-to-income ratio has to be 50% or less, this is a ratio that is calculated based off of your income and monthly credit liabilities such as credit cards, mortgage payments if any, auto car payments or any other loans that may appear on your credit report. 
  • Private Mortgage Insurance: This is  separate from your home insurance. This private insurance is required if you put less than 20%, it is to protect investors in case the mortgage were to go into default. However, after you reach 20% equity this will fall off your mortgage payment.
  • Types of Conventional Loans:
    • Fixed Rate: This type of loan guarantees that your payment remains the same regardless of how the market is doing. You can finance your home loan into a 10, 15, 20 & 30 year term. 
    • Non-Confirming- Are loans that surpass the Federal Housing Finance Agency (FHFA). These loans are usually Jumbo loans that surpass the mortgage limits set by the FHFA.
    • Adjustable rate mortgages: is a type of conventional loan that is a fixed rate for a certain period of years followed by a period of how often it will be adjusted. 
      • For example: 5/6 ARM would be a fixed rate for 5 years and after that period the rate would be adjusted every 6 months/ The rate gets adjusted based on the real estate index and margin. 

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Loan Options

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Frequently Asked Questions

Not necessarily, when purchasing a new home, the seller can pay for all or part of your closing. Contact us to help you with this. 

You can have as many as you like, however, you can only have 10 financed properties. If you are looking into investing in real estate contact us for more information. 


Conventional loans have a higher credit score requirement than an FHA loan. The guidelines are stricter for conventional loans, however, the mortgage insurance falls off after you reach 20% equity of the home or if your down payment is 20% of the sales price.  

VA loans are only available for people who are military service members or a qualifying surviving spouse. 

For a VA loan you do not have to put a down payment but you cannot use this type of loan for a Second home and you do have to pay a funding fee that goes towards to the VA department, some people may qualify to get this fee waived. Contact us for more information.


These materials are not from HUD, VA, or FHA and were not approved by HUD or any other government agency.

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