Buy a home with Conventional Mortgage Pre Approval. Whether you're buying your first home or upgrading for a growing family, conventional loans offer flexibility with high loan limits and the potential to save money by avoiding mortgage insurance by providing a higher down payment. Paired with our mortgage planning philosophy, a conventional mortgage can be structured to create the perfect home buying loan.
A conventional home loan is a mortgage funded by a private lender, such as a bank, credit union, or mortgage company, that meets the qualifying standards set by Fannie Mae and Freddie Mac. Approval is based on your own credit, income, and down payment.
This is the most common type of mortgage in the United States. Because it follows Fannie Mae and Freddie Mac guidelines, a conventional loan offers flexible terms, competitive rates for strong borrowers, and down payments as low as 3% for qualified buyers. Most conventional loans are "conforming," meaning the amount falls within the annual conforming loan limit set by the Federal Housing Finance Agency (FHFA). You can use one to buy a primary home, a second home, or an investment property.
If your down payment is below 20%, you add private mortgage insurance (PMI), which drops off once you reach 20% equity.
A conventional mortgage is one of the most flexible ways to buy a home, and how you structure it matters as much as the loan itself. At The Mortgage Phoenix Group, we treat your conventional home loan as a financial decision, not a form to fill out. Using our 7 Financial Principles and a true mortgage planning approach, we start with your full financial profile and build a strategy around your goals.
Here is what most buyers miss: the biggest down payment is not always the smartest move. Sometimes the stronger play is keeping cash in reserve, clearing higher-cost debt first, or timing your purchase around your income and the market. What really makes a great mortgage is how you allocate your funds and when you put them to work.
That is exactly what our certified mortgage planners do with you. We help you look at your income, savings, debt, and timeline through our 7 Financial Principles, then map the moves that put you in the strongest position today and years down the road. You walk away with a plan built around your money, your goals, and your life in California.
Get started today and talk with a certified mortgage planner.
The smartest way to buy a home is rarely the biggest down payment. It is knowing how to balance your cash, your reserves, and your timing so your conventional loan fits your whole financial picture. Our 7 Financial Principles help you strike that balance and borrow with intention.
A loan officer will help you determine if you are in a position to buy.
Borrowers generally need a minimum credit score of 620 to qualify for a conventional loan, with better rates and terms available for higher credit scores.
A minimum of two years of consistent employment history is typically required. In some cases, 18 months may be considered sufficient.
A down payment of at least 3% is required for first-time homebuyers. For those who are not first-time buyers, the minimum down payment is 5%.
The maximum allowable DTI for conventional loans is generally up to 50%, depending on the lender’s guidelines and the borrower’s credit profile.
Conventional loans are subject to loan limits that vary by county, reflecting local home prices.
Conventional loans are not government-backed, require a minimum 620 credit score, and allow PMI to be cancelled once you reach 20% equity. FHA loans are government-insured, accept credit scores as low as 580 with 3.5% down, but require mortgage insurance for the life of the loan. Conventional loans are better for strong-credit borrowers; FHA loans are better for buyers with lower credit or smaller down payments.
A conventional home loan is a mortgage not insured by any government agency, offered by private lenders like banks and mortgage companies. These loans follow guidelines set by Fannie Mae and Freddie Mac and require a minimum 620 credit score and as little as 3% down. They can be used for primary residences, second homes, and investment properties, with PMI cancellable once you reach 20% equity.
You apply with a private lender who reviews your credit, income, and assets. If approved, you make monthly principal and interest payments for the life of the loan. If your down payment is less than 20%, PMI is added to your payment until you reach 20% equity, at which point it can be removed. Most conventional loans close in 30 to 45 days.
Conventional loan rates change daily based on market conditions, your credit score, loan term, and down payment amount. For today's most accurate rate, contact The Mortgage Phoenix Group at +1 909-324-4373 or visit themortgagephoenixgroup.com/mortgage-rates for a free, no-obligation quote with no impact on your credit score.
Many lenders offer conventional refinance loans, including national banks like Wells Fargo and Chase, online lenders like Rocket Mortgage, and local mortgage companies like The Mortgage Phoenix Group. Refinance options include rate-and-term refinance, cash-out refinance, and PMI removal refinances. Contact The Mortgage Phoenix Group at +1 909-324-4373 to compare your best refinance options.
To refinance a VA loan to a conventional loan, you'll need at least 5–20% equity, a minimum 620 credit score, and standard income documentation. Your lender will order an appraisal and process a full refinance - your VA loan is paid off and replaced with the new conventional mortgage. This is a common move for veterans who want to free up their VA entitlement for a future home purchase or convert the property to a rental. Contact The Mortgage Phoenix Group at +1 909-324-4373 to explore your options.
.jpg)
