Loan Programs  |  02

Conventional Loans

The classic. Still the most popular mortgage in America for a reason.

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The quick version

How it works

A conventional loan is a mortgage that isn't insured by a government agency. Most follow guidelines set by Fannie Mae and Freddie Mac, which keeps them widely available and competitively priced. They work for primary homes, second homes, and investment properties, and they reward solid credit and steady income. Put less than 20% down and you'll pay private mortgage insurance, but unlike some government loans, that insurance can come off once you build enough equity. If you like options and flexibility, conventional is usually the first loan we price for you.

Highlights

Works for any occupancy

Primary home, vacation home, or rental property.

Removable mortgage insurance

PMI can be canceled as your equity grows.

Fixed or adjustable terms

15, 20, 30-year fixed, or adjustable-rate options.

Competitive pricing

Strong credit and equity earn better rates.

FAQ

Questions people actually ask

Tap a question to see the answer.

1What's the difference between conventional and FHA?+
FHA loans are government-insured and more forgiving on credit, but carry mortgage insurance that may last the life of the loan. Conventional loans reward stronger credit and let you drop mortgage insurance later. We'll price both so you can compare.
2Do I need 20% down?+
No. That's one of the most common mortgage myths. Conventional loans are available with much less down. Going below 20% just means paying PMI until you build equity.
3How do I get rid of PMI?+
You can ask to cancel PMI once your balance reaches 80% of the home's original value, and it drops off automatically at 78% if you're current on payments. A rise in home value can sometimes speed that up with a new appraisal.
4What is a conforming loan limit?+
It's the maximum loan size Fannie Mae and Freddie Mac will buy, set every year by the FHFA and higher in some high-cost counties. Loans above that limit are called jumbo loans.
5Can I use a conventional loan for a rental or second home?+
Yes. Conventional loans cover second homes and investment properties, though down payment and pricing requirements are higher than for a primary residence.
6What credit score do I need?+
Conventional loans generally require a higher score than government programs, and pricing improves as your score goes up. We'll show you how your score affects your rate.
7Fixed or adjustable: which is better?+
A fixed rate keeps your principal and interest payment the same for the life of the loan. An adjustable rate starts lower but can change later. The right answer depends on how long you plan to keep the home.
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This information is general and educational. It is not a commitment to lend. Program guidelines vary by lender, change over time, and are subject to credit approval and underwriting.

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Plano Mortgage Broker

Mohave Mortgage

5830 Granite Pkwy # 100-213

Plano Texas, 75024

Office: (469) 414-5554

Branch NMLS # 2690682

Mohave Mortgage

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