Flexible Conventional Loan Options for Homebuyers
Conventional loans are one of the most popular mortgage options for homebuyers and homeowners looking to refinance. These loans offer flexible terms, competitive rates, and lower costs for qualified borrowers.
What Is a Conventional Loan?
A conventional loan is a mortgage that is not backed by a government agency. Instead, it follows guidelines set by Fannie Mae and Freddie Mac.
These loans are commonly used for primary residences, second homes, and investment properties, offering a versatility that government-backed loans often cannot match.
- Fannie Mae Approved
- Freddie Mac Approved
Benefits of Conventional Loans
Low Down Payment
Secure your dream home with as little as 3% down for qualified first-time homebuyers.
Competitive Rates
Benefit from market-leading interest rates that reward your strong credit history.
No Upfront PMI
Unlike FHA loans, conventional loans don’t require upfront mortgage insurance fees.
PMI Removal
Mortgage insurance can be removed once you reach 20% equity in your property.
Flexible Property Types
From single-family homes to condos and 2-4 unit investment properties, conventional loans cover them all.
Conventional Loan Requirements
Understanding the baseline standards set by Fannie Mae and Freddie Mac for your loan approval.
620+
Credit Score
Minimum requirement for conventional financing.
3-20%
Down Payment
Flexible options based on buyer profile and loan type.
45-50%
DTI Ratio
Maximum debt-to-income ratio for most approvals.
Reserves
Liquidity
Proof of assets to cover several months of payments.
Government-Backed
FHA Loans
Lower Credit Entry
Approvals starting as low as a 580 score.
Higher MI Costs
Upfront and monthly mortgage insurance required for the life of the loan.
Private Financing
Conventional
Higher Credit Entry
Requires 620+ for the best terms and rates.
Lower Long-Term Cost
No upfront MI and cancellable monthly insurance after 20% equity.
Who Is a Conventional
Loan Best For?
Borrowers with good to excellent credit
Buyers putting down 5% or more
Homeowners looking to refinance high interest debt
Real estate investors building a portfolio
How to Get a Conventional Loan
Our streamlined digital process makes securing your mortgage faster and more transparent than ever.
Get pre-approved
Verify your buying power in minutes with our online portal.
Submit documents
Securely upload your income and asset verification files.
Lock your rate
Secure current market pricing to protect your monthly payment.
Close on your loan
The final step to receiving the keys to your new home.
View Today's Conventional Loan Rates
Compare real-time rates available for your area in Boca Raton.
Check Boca Raton RatesConventional Loan FAQs
Typically, a minimum credit score of 620 is required for a conventional loan. However, higher scores (740+) generally qualify for significantly better interest rates and lower private mortgage insurance (PMI) costs.
Ready to Get Started?
Get personalized loan options and competitive rates with MJS Financial LLC.