May help preserve cash, but mortgage insurance and other costs should be considered.
The conventional loan workshop
Build the loan around your plans.
Conventional financing can work in more than one way. Start with how you will use the property, then shape the rest of the plan.
Choose your planning lane
What kind of property are you considering?
Open the path that sounds most like your goal.
01Primary homeOpen +
A home you plan to occupy. We can review down-payment choices, mortgage insurance, credit, income and the complete monthly housing picture.
First-time buyer guidance →02Second homeOpen +
An eligible property used as a second home. Location, occupancy, available funds and current housing obligations all help shape the review.
Talk through a second-home plan →03Investment propertyOpen +
A non-owner-occupied property intended for rental or investment use. Down payment, reserves, eligible rental income and the larger portfolio plan may matter.
Explore investment-property loans →Anatomy of a conventional loan
Six pieces help form the complete picture.
No single number tells the whole story. The pieces work together.
- 01Down payment
Available choices depend on the loan, occupancy and your qualifications. A 20% down payment is not always required.
- 02Credit history
The review considers more than a score, including account history and recent activity.
- 03Income
Stable, documentable income helps show the ability to repay the loan.
- 04Monthly debts
Current obligations are reviewed alongside the proposed housing expense.
- 05Property and appraisal
The home, its intended use and an acceptable appraisal are part of the loan decision.
- 06Mortgage insurance
It may apply with a smaller down payment and may be removable when applicable requirements are met.
One common question
When might mortgage insurance enter the plan?
Private mortgage insurance may be required when the down payment is below a program threshold. Its cost can vary based on the complete loan profile.
Look beyond one feature and review cash needed, monthly expense and longer-term goals.
Mortgage-insurance cancellation depends on the loan, payment history, equity and applicable requirements.
Rusty’s planning board
What affects the complete loan?
- Cash comfortFunds for the transaction, reserves and life after closing
- Monthly comfortThe full housing expense, not only principal and interest
- Property usePrimary home, second home or investment property
- Future plansHow long you may keep the home and what comes next
Common mistakes
Keep these off the workbench.
A little planning now can prevent a bigger surprise later.
Assuming 20% down is always required
Comparing rate without comparing total cost
Opening new debt before closing
Conventional loan questions
Clear answers before you choose a direction.
Compare all mortgage options →Is conventional only for perfect credit?+
No. Approval depends on the full application and current program requirements.
Do I always need 20% down?+
No. Available down-payment choices depend on the program and your qualifications.
Can first-time buyers use it?+
Yes, many first-time buyers consider conventional financing.
Can I use a conventional loan for more than a primary home?+
Potentially. Eligible second homes and investment properties may use conventional financing, but the requirements can differ by occupancy and property.
Is mortgage insurance permanent?+
Not always. Removal depends on the loan, equity, payment history and applicable servicing and program requirements.
Bring your plans to the table
Let’s build a mortgage plan you understand.
We can compare the moving pieces and find the questions worth answering next.