Loan Types

Conventional Loanকনভেনশনাল ঋণ

The standard mortgage for buyers with steady credit

Min. Down Payment

3-5%

Min. Credit Score

620+

Best For

Buyers with steady W-2 income

Talk to a Loan Officer

What Is It?

Understanding the Conventional Loan

A conventional loan is a mortgage that isn't insured or guaranteed by a government agency like the FHA, VA, or USDA. Instead, it follows underwriting guidelines set by Fannie Mae and Freddie Mac, the two entities that buy and securitize most U.S. mortgages.

Because they aren't government-backed, conventional loans typically require a somewhat stronger credit profile — but reward that with lower overall borrowing costs and the ability to drop mortgage insurance entirely once you reach 20% equity.

Key Benefits

Why Borrowers Choose This Program

No upfront MIP fee

Unlike FHA loans, there is no mandatory upfront mortgage insurance premium.

PMI can be removed

Private mortgage insurance cancels automatically once you reach 20-22% equity.

Works for any property type

Primary residences, second homes, and investment properties are all eligible.

Flexible terms

Choose from 15, 20, or 30-year fixed terms, or an adjustable-rate option.

Who It's For

Buyers with a credit score of 620+ and stable, documentable income
Those who can put down at least 3-5% and want to avoid FHA's permanent mortgage insurance
Buyers purchasing a second home or investment property
Anyone who wants the widest selection of loan terms

Requirements to Qualify

Minimum credit score around 620 (varies by lender/program)
Down payment starting at 3% for qualified first-time buyers
Debt-to-income ratio typically under 45-50%
Two years of employment / income history
Private mortgage insurance (PMI) if down payment is under 20%

Prosসুবিধা

No upfront mortgage insurance premium
PMI can be canceled once you build equity
Usable for primary, second, and investment homes
Widest range of term lengths and rate structures

Consঅসুবিধা

✕Stricter credit and income requirements than FHA
✕Larger down payment often needed for the best rates
✕PMI still required below 20% down

FAQs

Common Questions About Conventional Loans

Most lenders look for a minimum of 620, though a higher score unlocks better rates and lower PMI costs.

Yes — many conventional programs allow as little as 3% down for qualified buyers, with PMI added until you reach 20% equity.

It depends on your credit and savings. Conventional loans usually cost less over time if you qualify, since PMI can be removed — FHA is often easier to qualify for initially.

Ready to Get Pre-Approved?

See if the Conventional Loan is the right fit for your situation — free, no-obligation consultation.

Conventional Loanকনভেনশনাল ঋণ

Understanding the Conventional Loanকনভেনশনাল ঋণ বোঝা

Why Borrowers Choose This Programকেন ঋণগ্রহীতারা এই প্রোগ্রাম বেছে নেন

Who It's Forকাদের জন্য উপযুক্ত

Requirements to Qualifyযোগ্য হওয়ার প্রয়োজনীয়তা