Learn the Basics
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
| Lender | Private lenders | FHA-approved lenders |
| Government Insured? | No | Yes |
| Credit Score Requirement | Typically higher (620+) | Lower (minimum 580) |
| Interest Rate | Generally higher | Generally lower |
| Down Payment Requirement | Lower (minimum 3%) | Lower (minimum 3.5%) but private mortgage insurance required if down payment is less than 20% |
| Loan Options | More variety (fixed-rate, ARM) | Fewer options (mostly fixed-rate) |
Unique Benefits
Simpler and faster closing process compared to government-backed loans.
Conforming, nonconforming, jumbo, fixed-rate, ARMs, low/zero-down, non-QM
Slightly less difficult requirements, particularly regarding credit score minimums
Have a question? Learn more about conventional loans by reading the most common questions we’ve gotten from our clients.
A mortgage rate is the interest rate charged for a home loan. This rate can be determined based off a number of factors including economic conditions, individual credit score, and loan program to name a few.
PMI is required if you put less than 20% down. So, if you put less than 20% down you will be required to have PMI. However, you can request to cancel it once you reach 20% equity in your home.
Your mortgage advisor will advise you about the best time to lock your rate in based off current market conditions. It is important to have this conversation early in the process to ensure you are on the same page.
It is a common misconception that you need to put 20% down in order to qualify for a mortgage. In reality you can qualify with as little as 3% down. Ask your mortgage advisor about possible down payment assistance programs if you are limited on funds.
Mortgage rates will fluctuate daily based off a variety of factors, the main being current economic conditions.
