What is the difference between conventional and conforming?

A conforming loan is a conventional loan that falls within Fannie Mae and Freddie Mac loan limits — $806,500 for most single-family markets in 2025, with higher limits in designated high-cost counties. Loans above that limit are conventional but non-conforming, commonly called jumbo loans. Most buyers are purchasing in conforming territory. We handle both conforming and jumbo conventional loans.

Can I put less than 20% down on a conventional loan?

Yes — you can put as little as 3% down through Fannie Mae HomeReady or Freddie Mac Home Possible for first-time buyers, or 5% down for most repeat buyers. You will pay PMI until you reach 20% equity, but that PMI is cancellable — unlike FHA mortgage insurance which stays for the life of the loan if you put less than 10% down. We will show you exactly what the PMI cost is and when it cancels for your specific scenario.

How do I get rid of PMI on a conventional loan?

Two ways. First, PMI automatically cancels when your loan balance reaches 78% of the original purchase price based on your scheduled payment history. Second, you can request cancellation when your balance reaches 80% of the original value — either through payments or if your home has appreciated. If your home has appreciated significantly, a new appraisal may allow you to cancel PMI even sooner. We will walk you through the options.

Can I pay off a conventional loan early?

Yes. Most conventional loans have no prepayment penalty, so you can make extra payments or pay off the loan in full at any time without fees. This makes the 30-year fixed a flexible option — you can pay it like a 15-year when cash flow allows and fall back to the minimum payment when it does not.

Should I choose a 15-year or 30-year fixed?

The 15-year saves you significantly in total interest and gets you to mortgage-free status twice as fast — but the payment is substantially higher. The 30-year gives you maximum cash flow flexibility. For most buyers, the right answer depends on the size of the payment difference relative to your income and other financial priorities. We run both scenarios side by side with total interest paid, equity growth, and payment comparison so you can make the decision with full information — not just a gut feel.

How do I get the best conventional rate?

The biggest factors are your credit score, down payment, loan amount, loan term, and property type. As an independent mortgage broker, we shop multiple wholesale lenders simultaneously to find the lowest rate available for your exact scenario — not just whatever one bank happens to be offering that day. That is the core advantage of working with a broker over going directly to a bank or retail lender.

What property types qualify for conventional financing?

Single-family homes, condos, townhouses, and 2-4 unit properties all qualify. Primary residences, second homes, and investment properties are all eligible — though down payment requirements and rates differ by occupancy type. Investment properties typically require 15–25% down and carry a rate adjustment compared to primary residence financing.