Conventional Loans
Conventional Loans
The most common mortgage in the market — and usually the cheapest long term for borrowers with solid credit.
Joe Piccirello | NMLS #1988505
Conventional loans are backed by Fannie Mae or Freddie Mac rather than a government agency. They're flexible, competitively priced, and the mortgage insurance comes off once you reach 20% equity — which is why they often beat FHA over the life of the loan.
We price conventional purchases and refinances, including primary homes, second homes and investment properties.
- As little as 3% down for qualified first-time buyers
- 620+ credit score typical minimum
- PMI removable at 20% equity — not permanent
- Available for primary, second home and investment
- 15, 20 and 30-year fixed plus ARM options
- Higher loan amounts up to the conforming limit
Conventional vs. FHA: Which One Is Cheaper for You
FHA is more forgiving on credit and debt ratios, but its mortgage insurance generally lasts the life of the loan. Conventional pricing is credit-sensitive: with a strong score, both the rate and the PMI factor drop sharply, and PMI ends at 20% equity.
The right answer depends on your score, down payment and how long you plan to keep the loan. We run both scenarios side by side with real pricing so you're comparing dollars, not opinions.
Private Mortgage Insurance, Explained
PMI applies when you put less than 20% down. It can be paid monthly, financed into the rate (lender-paid), or covered with a single upfront premium. Monthly PMI automatically terminates at 78% loan-to-value based on the original schedule, and you can request removal at 80% — often sooner if your home has appreciated and you order a new appraisal.
Conforming Loan Limits
Conventional loans must stay within the annual conforming loan limit set by the Federal Housing Finance Agency for the county. Above that limit, financing moves into jumbo territory with different down payment, credit and reserve requirements. We will tell you which side of the line your purchase price falls on.
Frequently Asked Questions
What credit score do I need for a conventional loan?
620 is the common floor, but pricing improves meaningfully at 680, 720 and 760. We can show you what each tier is worth on your specific loan amount.
Can I use a conventional loan for a rental property?
Yes. Investment property purchases typically require 15%–25% down and carry pricing adjustments compared with a primary residence.
Can I put 20% down to avoid PMI?
Yes, and it's often the cheapest structure. But it isn't always the best use of your cash — we compare putting 20% down against keeping reserves and paying PMI temporarily.
Joe Piccirello | NMLS #1988505
Licensed mortgage loan originator. Verify licensing at NMLS Consumer Access.
Edge Home Finance Corporation | NMLS #1988505
5868 Baker Rd, Minnetonka, MN 55345, USA
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Call or text us at (602) 502-2268 or request a quick quote online.