› Conventional Loan
Conventional Loan
Conventional loans are one of the most widely used financing options for homebuyers. They offer flexible terms, predictable payments, and strong financing power for borrowers with steady income. At Premier Plus Lending, we help you understand your options clearly so you can move forward with confidence.
What is a Conventional Loan?
A conventional loan is one of the most widely used mortgage options, designed for buyers with stable income and solid credit. These loans follow guidelines set by Fannie Mae and Freddie Mac, offering flexibility across different property types and financial goals.
Whether you’re buying your first home or expanding your portfolio, this structure gives you more control over how your financing is set up.
Down payments starting as low as 3%
No upfront mortgage insurance fees
Available for primary, second homes, and investment properties
Competitive rates for strong credit profiles
PMI can be removed over time
Frequently Asked Questions
What's the difference between a conventional and FHA loan?
FHA loans are backed by the federal government and allow lower credit scores (as low as 580) and smaller down payments. However, they require mortgage insurance for the life of the loan if you put less than 10% down. Conventional loans have stricter credit requirements but offer more flexibility in property type, loan size, and - once you hit 20% equity - no ongoing mortgage insurance.
When does PMI go away?
Private mortgage insurance (PMI) is automatically cancelled when your loan balance reaches 78% of your original home value. You can also request removal once you've reached 20% equity - either through payments or appreciation. We'll walk you through how to request cancellation when the time comes.
Can I use a conventional loan for an investment property?
Yes, conventional loans are one of the few mortgage types that allow investment property purchases. You'll typically need a larger down payment (15–25%) and a higher credit score. Rental income from the property may be factored into your qualifying income, depending on the situation.
Fixed rate or adjustable rate - which is better?
A fixed-rate mortgage locks your interest rate for the life of the loan, ideal if you plan to stay long-term and want payment stability. An adjustable-rate mortgage (ARM) starts at a lower rate for an initial period (typically 5, 7, or 10 years), then adjusts annually. ARMs can make sense if you plan to move or refinance before the adjustment period begins.
How long does the process take?
From application to closing, most conventional loans take 30–45 days. Having your documents ready upfront and responding quickly to any requests from your loan officer will help keep things on track. We'll give you a clear timeline and check in throughout the process.
Related Articles
Homebuyers
What Credit Score Do You Really Need to Buy a Home?
Homebuyers
Student Loans and Home Loans: What Today’s Buyers Need to Know
Homebuyers
The Truth About Down Payments Most Buyers Don’t Hear
Homebuyers
Which Loan Is Right for You? The Smart Buyer’s Guide to FHA, VA, and Conventional
