Conventional Loans
The most popular mortgage option in America — for both purchase and refinance. Competitive rates, flexible terms, and options for first-time buyers, experienced homeowners, and anyone looking to lower their rate or access their equity.
What Is a Conventional Loan?
A conventional loan is a mortgage that is not backed by a government agency like FHA or VA. Instead, these loans follow guidelines set by Fannie Mae and Freddie Mac, making them widely available through most lenders.
Conventional loans cover a lot of ground. First home, upgrade, second home, jumbo, investment property, or a straightforward refi — there is a conventional structure for most situations.
For low-to-moderate income borrowers, HomeReady (Fannie Mae) and HomePossible (Freddie Mac) are specialized conventional programs offering reduced mortgage insurance, lower down payments, and flexible income qualification including boarder and rental income. These are some of the best-kept secrets in lending for first-time buyers.
Refinancing is one of the most common uses of conventional loans. A rate-and-term refinance lets you lower your interest rate or change your loan term without taking cash out. A cash-out refinance lets you tap into your home equity for renovations, debt consolidation, or other financial goals. In both cases, conventional refinance loans typically offer the lowest rates for borrowers with strong credit.
With access to over 160 lenders through West Capital Lending, I can shop your loan across multiple investors to find the best rate and terms available for your specific profile.
Key Benefits
Competitive Interest Rates
Conventional loans consistently offer some of the lowest rates available, especially for borrowers with strong credit profiles.
Low Down Payment Options
Put down as little as 3% on your home purchase. Programs like HomeReady and HomePossible are specifically designed for low-to-moderate income borrowers with reduced MI and lower down payment requirements.
Down Payment Assistance (DPA)
Multiple DPA programs can help cover your down payment and closing costs, including conventional DPA options that pair with standard loan programs to reduce your out-of-pocket costs.
Flexible Loan Terms
Choose from 15-year, 20-year, or 30-year fixed-rate terms, plus adjustable-rate options to match your financial goals.
No PMI with 20% Down
Avoid private mortgage insurance entirely by putting 20% down, or remove it once you reach 20% equity in your home.
Jumbo Loans for Higher-Value Homes
Buying above conforming loan limits? Jumbo conventional loans offer competitive rates for high-value properties, with flexible guidelines for well-qualified borrowers.
Renovation Financing
Fannie Mae HomeStyle and Choicer Renovation loans let you finance the purchase price plus renovation costs in a single conventional loan — ideal for buyers who want to upgrade a home to their vision.
Refinance to Save
Lower your rate with a rate-and-term refinance, shorten your loan term to build equity faster, or pull cash out for renovations, debt consolidation, or investments.
Who Is This For?
Conventional loans are ideal for borrowers with good to excellent credit who want the most competitive rates and the flexibility to structure their loan around their financial goals.
- First-time homebuyers looking for low down payment options, HomeReady/HomePossible programs, and competitive rates
- Buyers who need down payment help through conventional DPA programs that reduce out-of-pocket costs
- High-value property buyers who need jumbo financing above conforming loan limits
- Renovation buyers using HomeStyle or Choicer Renovation to finance purchase plus improvements
- Move-up buyers upgrading to a larger home or better location
- Refinancers looking to lower their rate, shorten their term, or cash out equity
- Second home or vacation property buyers who want traditional financing
- Borrowers with 20%+ equity who want to eliminate private mortgage insurance
Ready to Get Started?
Let me find you the best conventional loan rate from our network of 160+ lenders. Apply online or schedule a call to discuss your options.