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Buyers with strong credit

Conventional Loan Guide

Compare conventional mortgage options for primary homes, second homes, refinances, and buyers with solid credit.

Primary, second home, and investment options
Fixed-rate and adjustable-rate structures
Mortgage insurance may be removable

What is a conventional loan?

A conventional loan is a mortgage that is not insured by a government agency. It is one of the most common paths for borrowers buying a primary residence, refinancing an existing loan, purchasing a second home, or financing an eligible investment property.

When it can be a strong fit

Conventional financing can work well when your credit profile, income documentation, reserves, and property type fit agency or investor guidelines. It is often compared against FHA financing because conventional loans may offer different mortgage insurance rules, property standards, and long-term cost structures.

What to prepare

Borrowers should be ready to document income, assets, employment history, credit obligations, and the source of down payment funds. If you are comparing options, review the monthly payment, cash due at closing, mortgage insurance, rate structure, and refinance flexibility together.

Common questions

FAQ

Who is a conventional loan best for?

Conventional loans are often a strong fit for borrowers with established credit, stable income, and enough savings for a down payment and closing costs.

Can I use a conventional loan for a second home?

Yes, conventional financing is commonly used for eligible primary residences, second homes, and investment properties.

Does a conventional loan always require 20 percent down?

No. Some conventional programs allow lower down payments, though mortgage insurance may apply when equity is below required thresholds.