Conventional Home Loans
Affordable Financing for Homebuyers & Investors
Finding the right mortgage in Maryland, Washington DC, or Virginia means choosing a loan that balances affordability, flexibility, and long-term savings.
Whether you're a first-time homebuyer, looking to upgrade, or an investor purchasing a rental property, a conventional mortgage loan offers a versatile financing option that fits your needs.
Who Benefits from a Conventional Loan?
- Have good to excellent credit: A higher credit score may qualify you for lower interest rates.
- Want to avoid mortgage insurance: PMI is required for down payments under 20%, but it can be removed once you reach 20% equity.
- Need flexibility: These loans can be used for primary residences, vacation homes, and investment properties.
- Prefer lower upfront costs: Unlike FHA and VA loans, there are no upfront funding fees.
- Want to finance higher-priced homes: Conventional loans allow loan limits up to $766,550 in high-cost areas like DC and Northern Virginia.
How Do Conventional Loans Compare to Other Options?
What are the requirements for conventional loans? And how do they compare with other loan types?
Conventional
Features of Conventional Loans
-
Minimum Down Payment: 3% (or 20% to avoid PMI)
-
Mortgage Insurance: Required if <20% down
-
Credit Score Requirement:
620+ -
Loan Limit: Up to $766,550 (high-cost areas)
-
Borrower Eligibility:
Any qualified buyer
FHA Loans
Features of FHA Loans
-
Minimum Down Payment:
3.5% -
Mortgage Insurance:
Required -
Credit Score Requirement:
580+ -
Loan Limit:
County-dependent -
Borrower Eligibility:
Any qualified buyer
VA Loans
Features of VA Loans
-
Minimum Down Payment:
0% -
Mortgage Insurance:
Not Required -
Credit Score Requirement:
No minimum -
Loan Limit:
Lender-dependent -
Borrower Elibility:
Military members & veterans
Why Choose Conventional Loans? Key Benefits for Homebuyers
Concerned About High Upfront Costs?
Many buyers worry about saving for a large down payment. A conventional loan allows you to purchase a home with as little as 3% down, making homeownership more accessible.
✔ Lower upfront costs compared to jumbo loans or cash purchases.
✔ No upfront mortgage insurance fees, unlike FHA loans.
Want to Avoid Ongoing Mortgage Insurance?
FHA loans require lifetime mortgage insurance, increasing long-term costs. With a conventional loan, PMI can be removed once you reach 20% equity, helping you save money over time.
✔ Eliminate PMI once equity reaches 20%.
✔ Save hundreds per month compared to FHA loans.
Looking for Investment Opportunities?
Real estate investors in Maryland, DC, and Virginia often prefer conventional loans because they don’t require owner-occupancy. This makes them an excellent choice for rental properties and second homes.
✔ Finance vacation homes or rental properties.
✔ No government occupancy restrictions.
Frequently Asked Questions About Conventional Loans
Can I buy a foreclosed home with a conventional loan?
Yes, you can purchase a foreclosed home with a conventional loan, as long as the property meets the lender’s requirements for condition and value.
Is a home inspection required?
A home inspection isn't mandatory for a conventional loan, but it's highly recommended to ensure the property's condition and avoid potential issues down the line.
Can I rent out my conventional loan home?
Yes, you can rent out your home if you have a conventional loan. However, some lenders may require you to live in the home for a period before renting it out.
Can a first-time homebuyer get a conventional loan?
Absolutely! First-time homebuyers can qualify for a conventional loan, often with as little as 3% down, making homeownership more accessible.
How much do I need for a down payment?
Conventional loans typically require a down payment of at least 3% for first-time homebuyers and 5% for others. However, a larger down payment may help you secure better terms.
How do I apply?
To apply, you'll need to provide financial documents like your credit report, proof of income, and employment. You can apply through a lender or mortgage broker, who will guide you through the process.
Why might a home not qualify for a conventional loan?
Homes may not qualify for a conventional loan if they don’t meet specific requirements for condition, value, or location. Lenders may also decline properties with significant structural damage or in areas with high risk of natural disasters.