🏠 Conventional Loans
The loan most buyers end up loving
Conventional loans are the most common mortgage in America for a reason: they’re flexible, they reward good credit, and — despite the biggest myth in home buying — they do not require 20% down. Qualified first-time buyers can put down as little as 3%.
Is this you?
Conventional Loans tend to be a great fit for…
- Buyers with solid credit (roughly 620+, with better pricing as scores rise)
- First-time buyers using 3% down programs like HomeReady or Home Possible
- Buyers who want mortgage insurance that cancels once they reach 20% equity
- Second homes and investment properties, which FHA can’t do
Questions friends actually ask
Conventional Loans: straight answers
How much do I need to put down on a conventional loan?
As little as 3% for qualified first-time buyers, and 5% for most other buyers. Putting 20% down eliminates private mortgage insurance (PMI), but it is absolutely not required to buy a home.
What credit score do I need for a conventional loan?
Most conventional programs start around a 620 credit score, with pricing improving as your score rises. If your score is lower, an FHA loan may be a better fit — and Cole can help you compare both side by side.
Does PMI last forever on a conventional loan?
No. Unlike FHA mortgage insurance, conventional PMI can be removed once you reach 20% equity in your home — and it automatically terminates at 22% equity. That’s one of the biggest long-term advantages of going conventional.
Keep exploring
FHA Loans
The first-time buyer favorite — 3.5% down, friendlier credit requirements, and forgiving guidelines for real-life finances.
Learn more →VA Loans
For those who served — $0 down, no monthly mortgage insurance, and some of the strongest terms in all of lending.
Learn more →USDA Loans
$0 down for homes in eligible smaller communities — many Twin Cities exurbs qualify, and most buyers have no idea.
Learn more →Not sure if conventional loans are right for you?
That’s literally what Cole is for. One conversation, all your options side by side, zero pressure to move forward.