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Conventional Mortgages

The Benefits of a Conventional Mortgage

A conventional mortgage is the traditional home mortgage that is a private-sector mortgage and not guaranteed or insured by the U.S. government.

Conventional loans are underwritten to Fannie Mae and Freddie Mac standards. The minimum down payment is 3% but more can be put down to minimize mortgage insurance.

The most common down payment is 5%. 20% down lets you avoid mortgage insurance all together.

Conventional loans are more credit sensitive so a conventional mortgage may require a higher credit score to qualify for the best interest rates and lender credits.

For a credit score of 740 or more, a loan balance of $250,000 or more and a loan to value of 80% or less we offer ELTE pricing which is even better pricing than our regular low prices!

The great thing about conventional loans is that after a 78% loan to value your mortgage insurance will drop off for the remainder of the loan.

Ask your loan officer about our full offering of conventional loans such as our Home Ready and Home Possible products for first time home buyers and our Lender Paid Mortgage Insurance products.

As with all of our loans, we offer options with lender credits that can reduce or eliminate your closing costs!

Is a conventional home loan right for me?

Should you get a conventional mortgage or a government loan? A fixed-rate or adjustable rate mortgage?

Deciding which mortgage product is best for you will depend largely on your unique circumstances, and there is no one correct answer. But our mortgage experts will be happy to sit down with you for a free, no-obligation consultation to go over your situation and help you decide which home loan is right for you.

Brittney Pogue, ready to save you money
Arrow pointing to Conventional Mortgage Requirements

Conventional Mortgage Requirements

Good Credit

Conventional loans are a bit more credit sensitive so a lower credit score can affect your rate/price.


You must wait longer to secure a conventional loan if you have declared bankruptcy.

Down Payment

The minimum down payment is 1% but more can be put down to minimize mortgage insurance. 

The most common down payment is 5%. 20% down lets you avoid mortgage insurance all together.

Deal Breaker

The DTI max is 43% but with strong compensating factors borrowers can get approved up to 50% DTI.

Get all your options on the table in a transparent, no obligation meeting with one of our expert loan officers.

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