How much do I need to put down on a conventional loan?

Qualified first-time buyers can put down as little as 3%. Putting down 20% avoids private mortgage insurance, but many buyers choose a lower down payment and remove PMI later.

When can I remove PMI from a conventional loan?

Once you reach roughly 20% equity, you can typically request PMI removal, and it generally falls off automatically at 22%. This is a key advantage over FHA mortgage insurance.

Is a conventional loan better than FHA?

Neither is universally better - it depends on your credit, down payment, and goals. We'll compare both side by side so you can see the real numbers.

Conventional Loans

Conventional loans: the flexible standard.

The most common mortgage type, conventional loans reward steady income and solid credit with flexible, competitive terms.

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Conventional loans aren't backed by a government agency. They're offered by private lenders and typically follow guidelines set by Fannie Mae and Freddie Mac, which makes them widely available and flexible.

They're an excellent fit for buyers with established credit and stable income, and they work for primary homes, second homes, and investment properties alike.

Quick facts

Down payment: 3%-20%
Credit: Often 620+; best pricing 740+
PMI: Removable over time

Key advantages

Down payments as low as 3% for qualified first-time buyers
No upfront mortgage insurance premium
PMI applies only under 20% down and can often be removed later
Available for primary homes, second homes, and investment properties
Conforming and jumbo options available

What to keep in mind

Generally requires stronger credit than government-backed programs
Debt-to-income guidelines can be more restrictive
Variable-income borrowers may need additional documentation

Frequently asked questions

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See if conventional is your best option.

Let's compare conventional against every alternative and find your lowest true cost.

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This information is for educational purposes only and is not a commitment to lend or a guarantee of approval. Program guidelines, rates, and eligibility vary by lender, location, and individual circumstances and are subject to change. Please consult a licensed mortgage professional for guidance specific to your situation.