Loan Programs

Conventional Loans

The most popular mortgage option — flexible terms, competitive rates, and no government restrictions on property type or use.

Apply Now (850) 725-6500

Min Down Payment

620+

Min Credit Score

45%

Max DTI Ratio

$766,550

2024 Loan Limit

Why Conventional

Key Benefits

Down Payment as Low as 3%

First-time homebuyers may qualify for conventional loans with just 3% down through programs like Fannie Mae HomeReady and Freddie Mac Home Possible.

Competitive Interest Rates

Borrowers with strong credit scores (740+) typically receive the most competitive rates available, often beating government-backed loan rates.

PMI Can Be Removed

Unlike FHA loans, private mortgage insurance on conventional loans can be cancelled once you reach 20% equity — saving you money long-term.

Primary, Second & Investment

Conventional loans can be used for primary residences, vacation homes, and investment properties — giving you maximum flexibility.

Higher Loan Limits

Conforming loan limits for 2024 are $766,550 for most areas. Jumbo conventional loans are available above this threshold for higher-priced homes.

Faster Closing Times

Without government agency approval requirements, conventional loans often close faster than FHA or VA loans — important in competitive markets.

Options Available

Conventional Loan Types

Fixed-Rate 30-Year

The most popular option — predictable payments for the life of the loan.

Fixed-Rate 15-Year

Pay off your home faster and save significantly on total interest paid.

Fixed-Rate 20-Year

A middle ground between the 15 and 30-year options.

Adjustable-Rate (ARM)

Lower initial rate that adjusts periodically — ideal for shorter-term ownership.

Fannie Mae HomeReady

3% down for low-to-moderate income borrowers with flexible income sources.

Freddie Mac Home Possible

3% down option with reduced PMI rates for qualifying borrowers.

Qualification

Basic Requirements

Minimum 620 credit score (higher scores get better rates)

Debt-to-income ratio typically 45% or below

Down payment of 3%–20%+ depending on loan type

Stable employment history (2 years preferred)

Property must meet conventional appraisal standards

Private mortgage insurance required below 20% down

Ready to Get Started?

Our Pensacola mortgage experts will shop dozens of lenders to find you the best conventional loan rate. NMLS #103035.

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