Conventional Loans

Flexible terms, competitive rates, and the lowest long-term cost for qualified buyers. No government fees, no red tape.

The most widely used loan program in the country. Whether you are buying your first home or your fifth, conventional financing offers the broadest flexibility on down payment, property type, and loan structure.

3%
Minimum down payment for first-time buyers
620+
Minimum credit score (680+ for best rates
21
Average days to close with Invest West
3%
Min Down Payment
620+
Min Credit Score
$832,750
2026 Conforming Limit
15 or 30 yr
Fixed Rate Terms
The Basics

What Is a Conventional Loan?

A conventional loan is a mortgage not insured or guaranteed by a government agency. Unlike FHA, VA, or USDA loans, conventional loans meet the guidelines set by Fannie Mae and Freddie Mac and are backed by private lenders.

Because there is no government backing, lenders use stricter qualification criteria, but in return borrowers get lower overall costs, fewer property restrictions, and more flexibility in loan structure.

Through our hybrid platform, we access multiple lending partners to find the most competitive conventional rate available, not just what one bank has on the shelf.

No Government Red TapeFaster underwriting, fewer property restrictions, and no upfront mortgage insurance premiums.
PMI Drops at 20% EquityUnlike FHA loans, private mortgage insurance cancels automatically once you reach 80% LTV.
Best Rates for Strong CreditBorrowers with 720+ credit scores typically see the most competitive rates available.
Works for More Property TypesPrimary homes, vacation homes, and investment properties all qualify. Condos and multi-family too.
Flexible Loan TermsChoose from 10, 15, 20, or 30-year fixed terms, or adjustable-rate options if it fits your timeline.
Qualification

Conventional Loan Requirements

These are general guidelines. Your specific situation may vary, and We can often find solutions for borrowers just outside the standard boxes.

Credit Score

620+

Minimum 620 to qualify. Rates improve significantly at 680 and again at 720. Ask us about a rapid rescore strategy if your score needs a boost.

Down Payment

3% to 20%

First-time buyers may qualify for as little as 3% down. Put 20% down to avoid PMI entirely. 5%, 10%, and 15% are all common options.

Debt-to-Income

45% or less

Most conventional loans allow a max DTI of 45%, sometimes up to 50% with compensating factors like strong reserves or a high credit score.

2026 Loan Limit

$832,750

The 2026 conforming loan limit in most U.S. counties. High-cost areas have higher limits, up to $1,249,125. Exact limit varies by county.

Employment

2-yr History

Lenders want to see a 2-year employment history. W-2 employees are straightforward. Self-employed borrowers typically need 2 years of tax returns.

Property

Move-in Ready

The property must be in livable condition. Conventional appraisers give more latitude on cosmetic issues but still check safety and structure.

Why Conventional

Advantages of Conventional Loans

Here is why conventional loans remain the most popular choice for home buyers and homeowners nationwide.

Lower Long-Term Cost

No upfront mortgage insurance premium, and PMI cancels automatically at 20% equity. Over 30 years this saves thousands compared to FHA.

More Property Flexibility

Conventional loans work for primary residences, second homes, and investment properties. FHA loans are limited to primary residences only.

Higher Loan Amounts

With conforming limits at $832,750 in most counties for 2026, conventional loans cover the vast majority of home purchases nationwide without going jumbo. Exact limit varies by county.

Faster Closings

Fewer government overlays means streamlined underwriting. Invest West averages 21-day closings, making your offer more competitive.

No Occupancy Restrictions

Purchase a vacation home or rental property without the restrictions that come with government-backed loan programs.

Seller Concessions

Conventional loans allow sellers to contribute up to 3-9% of the purchase price toward your closing costs depending on your down payment.

Side by Side

Conventional vs. FHA vs. VA

Not sure which loan type is right for you? Here is a quick comparison of the most common options.

FeatureConventionalFHAVA
Min. Down Payment3% to 5%3.5%0%
Min. Credit Score620580No minimum
Mortgage InsuranceDrops at 20% equityRequired life of loan (under 10% down)None
Upfront PremiumNone1.75% of loan amountVA funding fee
Property TypesPrimary, 2nd home, investmentPrimary onlyPrimary only
2026 Loan Limit$832,750 most counties*$541,287 most counties*No limit (eligible vets)
The Process

How to Get a Conventional Loan

We make the process clear and straightforward from first call to closing day.

1

Free Consultation

We review your income, credit, goals, and timeline. You will leave knowing exactly what you qualify for.

2

Same-Day Pre-Approval

We compare lending partners for your best rate and issue a pre-approval letter, usually the same business day.

3

Make a Strong Offer

A pre-approval from Invest West shows sellers you are a serious, credit-verified buyer in today's competitive market.

4

Close in 21 Days

We manage the entire underwriting process and keeps you updated. Most clients close in 21 days or less.

Common Questions

Conventional Loan FAQs

Can I get a conventional loan with a 620 credit score?
Yes, 620 is the minimum for most conventional loans. However your rate will be higher at 620 than at 680 or 720. If your score is close to a threshold, it may be worth waiting a few months to improve it. We can help you map out a strategy to maximize your score quickly.
What is the minimum down payment on a conventional loan?
Qualified first-time homebuyers can put as little as 3% down using programs like Fannie Mae HomeReady or Freddie Mac Home Possible. Repeat buyers typically need at least 5% down. With 20% down you avoid PMI entirely.
How much does PMI cost and when does it go away?
PMI typically costs between 0.5% and 1.5% of your loan amount per year. Once your loan balance drops to 80% of the home's original value you can request cancellation. At 78% federal law requires lenders to cancel it automatically.
Is a conventional loan better than FHA?
It depends on your situation. Conventional loans are generally better if you have a 620+ credit score and at least 5% to put down because PMI eventually goes away and there is no upfront premium. FHA can be the better fit if your credit is below 620. We will run both scenarios for your numbers.
Can I use a conventional loan to buy an investment property?
Yes. Conventional loans are the primary option for investment property purchases. You will need a higher down payment (typically 15-25%), a strong credit score, and additional cash reserves. FHA and VA loans are not available for investment properties.
How long does it take to close a conventional loan?
At Invest West Mortgage the average closing time is 21 days. The national average is 40 to 50 days. The difference comes down to having a responsive loan officer who manages the file proactively and has strong lender relationships.

Ready to Get Pre-Approved?

No cost and no commitment to get started. We move at the pace the market demands.