Purchase · Conventional Loans
Conventional Loans: Flexible Financing for Qualified Buyers
No government backing required — conventional loans offer competitive rates and flexible terms for buyers with solid credit and a reliable income.
Overview
What Is a Conventional Loan?
A conventional loan is a mortgage not backed by a government agency, offered through private lenders like Ross Mortgage Company. With strong credit and stable income, borrowers can access competitive rates, flexible terms, and down payments as low as 3% for qualifying first-time buyers.
As Little as 3% Down
For qualifying first-time buyers.
Competitive Rates
A strong credit profile typically earns the best available rates.
No Upfront MIP
Unlike FHA, no upfront mortgage insurance premium required.
Primary, Second Home & Investment
Conventional financing available across multiple property types.
Eligibility
Is a Conventional Loan Right for You?
Conventional loans reward strong credit and steady income with flexible, competitive financing. Here's some of what we look at:
Borrower Requirements
- Strong Credit Profile 620+ credit score typically required, stronger scores earn better rates
- Stable, Documented Income Consistent employment and income documentation required
- Manageable Debt-to-Income Ratio Lenders evaluate monthly obligations relative to gross income
- Down Payment Ready As little as 3% for qualifying first-time buyers, 5-20% for most scenarios
Property Requirements
- Primary, Second Home, or Investment Conventional loans available for multiple occupancy types
- Loan Within Conforming Limits Loan amount must fall within county conforming limits — jumbo financing available above those limits
- Property Appraisal Required Confirms value supports the loan amount
- Most Property Types Eligible Single family, condo, townhome, multi-family
Loan Details
The Numbers at a Glance
Conventional loan terms, rates, and requirements vary based on your credit profile, down payment, and property type. PMI is typically required when putting less than 20% down — a loan officer can walk you through when it makes sense vs. other loan options.
FAQ
Common Questions
What's the Difference Between Conventional and FHA?
A conventional loan is not backed by a government agency, while an FHA loan is insured by the Federal Housing Administration. Conventional loans avoid the upfront mortgage insurance premium FHA requires and let you cancel PMI once you reach 20% equity, but they generally ask for a stronger credit profile. A loan officer can compare both against your situation.
Do I Need 20% Down for a Conventional Loan?
No. Qualifying first-time buyers can put down as little as 3%, and most buyers put down somewhere between 5% and 20%. Putting less than 20% down simply means you'll carry private mortgage insurance (PMI) until you build enough equity to remove it.
What Is PMI and When Can I Remove It?
PMI (private mortgage insurance) protects the lender when your down payment is under 20%. Unlike FHA mortgage insurance, conventional PMI can be removed — typically once your loan balance reaches 80% of the home's value, and it automatically ends at 78%. It's a monthly cost, not an upfront premium.
Get Started
See if a Conventional Loan Is Right For You
Tell us a little about yourself and a loan officer will reach out — usually the same day.