Loan Options • Conventional Loans

Conventional loans · Stable, predictable payments

Conventional mortgages built around your long-term plan.

Fixed-rate conventional loans give you stable payments, flexible down payment options, and the freedom to build a plan that fits your budget, not a one-size-fits-all program.

Conventional loans are not backed by a government agency. If you like to read first, the Conventional Loans Guide walks through down payments, mortgage insurance, and how conventional compares side-by-side with FHA and other options.

NMLS #277954 • Success Mortgage Partners • Conventional loans are not backed by a government agency. Eligibility, down payment, and mortgage insurance requirements vary by investor, lender, and location.

Coaching insight

When a conventional loan makes the most sense.

Conventional loans reward strong credit, steady income, and responsible debt habits. They’re not backed by a government agency, which gives more flexibility in how your financing can be structured around your broader financial plan.

Well-qualified first-time & repeat buyers

Buyers with solid credit and manageable monthly obligations who want a stable, fixed payment and room to customize their loan term.

Buyers with 3–20%+ down

Households with enough funds for a modest or larger down payment, especially if avoiding or removing PMI is part of the strategy.

Multi-property owners

People purchasing a second home or investment property who want conventional flexibility on occupancy, terms, and structure.

How it works

Fixed rate, flexible structure.

A conventional loan uses a fixed interest rate and an amortized schedule—meaning your principal and interest stay the same every month for the life of the loan.

  • Fixed interest rate: Your rate does not change over the term.
  • Standard terms: Common options are 15- and 30-year, with others available.
  • Down payment options: As low as 3–5% for many primary homebuyers.
  • PMI when under 20% down: Private mortgage insurance can often be removed once you reach sufficient equity.

We’ll look at how long you expect to keep the home, what payment feels comfortable, and whether paying extra toward principal makes sense for your bigger plan.

Good fit signals

  • Stable income and employment over the last few years
  • Credit history that’s generally on time with manageable debts
  • Some flexibility in your budget for down payment and reserves
  • Buying a primary home, second home, or investment property

Not sure if you’re “qualified enough”? That’s exactly what a strategy call is for. We’ll review your picture and show you what’s realistic.

Choosing your term

15-year vs. 30-year fixed: which is right for you?

The “right” term isn’t just about math. It’s about cash flow, risk tolerance, and your broader goals—kids, retirement, business, or building a portfolio.

Faster payoff

15-year fixed

  • Significantly less interest paid over the life of the loan.
  • Often comes with a lower interest rate than 30-year options.
  • Higher monthly payment with more principal from day one.
  • Helps you build equity quickly and be mortgage-free sooner.

Best when your income is strong, your budget has margin, and you value paying off the home faster over maximum monthly flexibility.

Payment flexibility

30-year fixed

  • Lower monthly payment by stretching the term to 30 years.
  • More total interest over time compared to a 15-year loan.
  • Gives breathing room for savings, investing, or other goals.
  • You can still choose to pay extra toward principal any month.

Best when you want a stable payment with room in the budget for other priorities—and like having the option, not the obligation, to pay extra.

Conventional purchase checklist

  • Most recent 30 days of pay stubs (if applicable)
  • W-2s and/or 1099s for the last 2 years
  • Federal tax returns, if requested based on income type
  • 2 months of bank or asset statements for down payment and reserves
  • Government-issued ID and Social Security card (or applicable documentation)
  • Current housing history (lease, mortgage statement, or proof of payment)

Helpful “nice-to-have” items

  • Rough budget for monthly payment and cash you’re comfortable bringing to closing
  • Documentation for any recent large deposits
  • Letters of explanation for prior credit events, if needed
  • Short list of neighborhoods, school districts, or property types you’re targeting
  • Any info on gift funds you may use toward down payment or costs
Next steps

Numbers and deeper dives.

Want one rough payment and a clearer lane forward? Start with the guides that fit your situation, then run quick numbers in the mortgage calculators.

Conventional Loans Guide

Walk through down payments, PMI, and how conventional loans compare to FHA, VA, and other options in one plain-English guide.

Read the guide

FHA Loans Guide

See where FHA can outperform conventional for lower scores or higher debt ratios—and where conventional often wins long-term.

Read the guide

Temporary Buydowns vs. Points

Explore ways to manage your payment in the early years—whether through a buydown, discount points, or a simple fixed rate.

Read the guide

Mortgage Calculators

Estimate rough payments, compare 15- vs 30-year terms, and see how different down payment levels might feel month-to-month.

Open calculators

Quick answers

Conventional loan FAQs.

A quick snapshot of the questions that come up most often when we talk about conventional loans, down payments, and how they stack up against FHA or other options.

Your principal and interest stay fixed for the life of the loan. The only changes you might see are from property taxes and homeowners insurance, which can adjust over time and are usually handled through your escrow account.

Yes. Many buyers use 3–5% down on a conventional loan. You’ll typically have private mortgage insurance (PMI) until you reach around 20% equity, at which point we can look at options to remove it.

Not always. Conventional often wins for higher credit scores and larger down payments. FHA can be a better fit for lower scores or higher debt-to-income situations. We’ll compare both side-by-side so you can see which one lines up with your goals and timeline.

Yes. Conventional loans do not have pre-payment penalties. You can make extra principal payments, pay bi-weekly, or pay the loan off entirely whenever it lines up with your financial plan.

Often, yes. Conventional guidelines allow gift funds from eligible sources for some or all of your down payment and/or costs, especially on primary residences. We’ll walk through the rules so the money is documented correctly and underwriters are comfortable.

Ready to see your conventional options on paper?

We’ll compare 15- and 30-year terms, down payment options, and total cost over time so you can choose a plan that supports both today’s budget and tomorrow’s goals.

Programs, rates, and terms are subject to change without notice. Eligibility, underwriting, and documentation requirements vary by lender, investor, and location. This page is for informational purposes only and is not a commitment to lend. All loans subject to credit and collateral approval. All loans subject to approval. Equal Housing Lender.