Conventional Loans Explained for First-Time Buyers
No mandatory mortgage insurance premium and often lower long-term costs — here's when a conventional loan makes sense.
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.
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.
What would your monthly payment be?
Plug in a price, down payment and rate with my Hampton Roads mortgage calculator to estimate your payment, including taxes, insurance and PMI.