What is a conventional loan?
A conventional loan is a mortgage not backed by a government agency like the FHA or VA. It's the most common loan type overall and can offer the most flexibility and lowest long-term cost — if your credit and down payment are strong enough to qualify.
Comparing programs? My overview of special home loan programs in Virginia puts every option side by side.
Down payment and credit requirements
Conventional loans can require as little as 3-5% down for qualifying buyers, though a larger down payment (typically 20%) avoids private mortgage insurance (PMI) entirely. Credit score requirements are generally stricter than FHA loans.
When a conventional loan makes sense
If you have solid credit and can put down at least 5-10%, a conventional loan often ends up cheaper over the life of the loan than FHA, since PMI on a conventional loan can be removed once you reach 20% equity — FHA mortgage insurance often lasts for the life of the loan.
How I help you compare loan options
I work with lenders who will run your numbers across FHA, VA (if eligible) and conventional loans side by side, so you're choosing based on your actual monthly payment and long-term cost, not guesswork. Visit my First-Time Homebuyers page to see the full home-buying process.
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