Conventional Loans
Answers to the questions I hear most from buyers, homeowners, and investors.
Program Highlights
✓ As low as 3% down (first-time buyers)
✓ PMI removable at 80% LTV
✓ No upfront mortgage insurance fee
✓ Primary, second home, and investment eligible
✓ 15, 20, 25, and 30-year fixed terms
✓ Conforming limit: $806,500 (2026)
✓ PMI removable at 80% LTV
✓ No upfront mortgage insurance fee
✓ Primary, second home, and investment eligible
✓ 15, 20, 25, and 30-year fixed terms
✓ Conforming limit: $806,500 (2026)
Who It's Best For
✓ Credit score 680+ (best rates at 740+)
✓ Stable income with 2-year history
✓ Buyers who want to avoid permanent MI
✓ Second home or investment buyers
✓ Borrowers with 5-20% down payment
✓ Those planning to build equity quickly
✓ Stable income with 2-year history
✓ Buyers who want to avoid permanent MI
✓ Second home or investment buyers
✓ Borrowers with 5-20% down payment
✓ Those planning to build equity quickly
How Conventional Loans Work
Conventional loans are not backed by a government agency — they follow guidelines set by Fannie Mae and Freddie Mac. This means no upfront funding fees, no permanent mortgage insurance, and the widest range of property types and occupancy options. Your rate is based on credit score, LTV, and loan-level price adjustments (LLPAs). As a broker with access to 175+ wholesale lenders, I shop these adjustments across lenders to find you the best combination of rate and cost. Many borrowers assume FHA is cheaper — but for anyone with a 680+ score and 5%+ down, conventional often wins on total cost because PMI drops off while FHA MIP stays for life.
Conventional vs. FHA — Quick Comparison
| Feature | Conventional | FHA |
| Min Down Payment | 3% | 3.5% |
| Min Credit Score | 620 | 580 |
| Mortgage Insurance | Removable at 80% | Life of loan* |
| Upfront Fee | None | 1.75% UFMIP |
| Investment Property | Yes | No |
*With less than 10% down
Get a Conventional Loan Quote
Brainy Vu · NMLS 2658103 · (949) 771-1575
Still Have Questions?
I'm always happy to chat — no pressure, no obligation.