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Conventional Loans

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Service Overview

Building Wealth Through Traditional Financing

Conventional loans are the most common type of mortgage in America. If you have good credit, a stable income, and a 5-20% down payment, conventional financing offers speed, flexibility, and competitive rates.

At Dream House Mortgage, we specialize in conventional lending. We understand that qualified borrowers deserve straightforward financing without unnecessary complexity. We’ve helped thousands of borrowers with strong financial profiles access competitive conventional rates and close on their dream homes faster.

A conventional loan isn’t just standard. It’s smart financing for those who qualify.

What Is a Conventional Loan?

Traditional Mortgage Financing Without Government Backing

A conventional loan is a mortgage that isn’t backed or insured by the federal government. Banks and lenders like Dream House Mortgage originate conventional loans based on strict credit, income, and asset requirements. Because there’s no government guarantee, lenders are more conservative, but for qualified borrowers, that means faster approvals and better rates.

Conventional loans are the gold standard. Sellers prefer them. Realtors recommend them. Lenders compete for them. When you qualify for conventional financing, you’re in the driver’s seat.

This is borrowing power. This is financial strength. This is smart homeownership.

Why Conventional Loans Make Sense

The Real Advantages of Conventional Financing

Faster Approval Process

Conventional underwriting is streamlined. No government appraisal requirements. No special property inspections. For qualified borrowers, pre-approval can happen in 24 hours.

Flexible Terms and Programs

Conventional loans come with options. 15-year, 20-year, 30-year terms. Rate-and-term refinances. Cash-out refinances. Interest-only options for investment properties. Flexible rate locks. Conventional lending is adaptable to your goals.

Lower Insurance Costs

PMI (Private Mortgage Insurance) protects the lender if you default. But conventional PMI is typically lower than FHA MIP. And if you put 20% down, you avoid PMI entirely. That's real savings.

Better Rates for Qualified Borrowers

When you have good credit and strong finances, lenders compete for your business. Conventional rates are competitive and often better than government-backed alternatives. You're rewarded for your financial discipline.

Conventional Loan Basics

Everything You Need to Know About Conventional Financing

Loan Amount Range

Conventional loans can range from modest amounts to $1M+. Limits vary by lender and county, but most qualified borrowers can borrow up to $766,550 on conforming loans (higher on jumbo programs).

Credit Score Requirements

Excellent (740+): Best rates and terms available

Good (680-739): Competitive rates, standard terms

Acceptable (620-679): Rates slightly higher, may need a larger down payment

Below 620: Limited conventional options; FHA may be a better choice

Down Payment Options

5-10%: Requires PMI, faster approval

10-15%: Lower PMI, balanced down payment

15-20%: Reduced PMI or elimination on larger amounts

20%+: No PMI required, best rates

Debt-to-Income Ratio

Maximum 45% for most programs

Up to 50% with compensating factors (strong assets, high reserves)

We help you optimize your financial profile to qualify

Mortgage Insurance (PMI)

Not required if down payment is 20%+

Costs less than FHA MIP for those who need it

Can be removed once you reach 20% equity

Tax-deductible in some cases (consult tax advisor)

Property Requirements

Single-family homes (attached or detached)

Condos (conventional-approved only)

Townhomes

Multi-unit properties (2-4 units)

Investment properties

New construction or existing homes

Manufactured homes (specific requirements)

Property Condition

Properties must meet standard lending criteria. No major structural issues, significant roof problems, unsafe systems, or major health hazards. A standard inspection typically identifies any issues.

Our Approach

Strategic Process Designed for Speed and Clarity

Step 1: Pre-Qualification & Financial Review

We review your credit, income, assets, and debts. For qualified borrowers, this is quick and straightforward. You’ll know within 24 hours if conventional financing makes sense.

Step 2: Program Selection & Strategy

With 50+ lenders and dozens of conventional programs, we find the right fit. Best rate? Best terms? Flexible prepayment options? We match you with the ideal program.

Step 3: Pre-Approval

We get you fully pre-approved in 24-48 hours. Your pre-approval letter carries weight with sellers. Your buying power is clear.

Step 4: Property Selection & Offer

You find the home. We ensure it meets conventional standards. You make an offer with confidence.

Step 5: Appraisal & Processing

We order the appraisal and manage processing. Straightforward underwriting for qualified borrowers typically means smooth sailing.

Step 6: Clear to Close

All conditions satisfied. Documentation complete. We coordinate closing. You sign. You get keys.

Step 7: Ongoing Partnership

After closing, we’re your trusted lender. Refinancing questions? Investment property financing? Portfolio expansion? We’re here.

Conventional Loan Benefits Explained

Why Qualified Borrowers Choose Conventional

Benefit 1: Speed

Faster pre-approval. Faster underwriting. Faster closing. When you qualify conventionally, everything moves quickly.

Benefit 2: Financial Rewards

Good credit and strong finances earn you the best rates. You're rewarded for your financial discipline. Over 30 years, that compounds into significant savings.

Benefit 3: Flexibility

Choose your term. Choose your rate lock. Choose your prepayment options. Conventional loans adapt to your preferences.

Benefit 4: Lower Long-Term Costs

No PMI with 20% down. Lower PMI if you need it. Competitive rates. The total cost of a conventional loan is often lower than that of alternatives.

Benefit 5: Assumability

Your loan can be assumed by future buyers. In a rising-rate environment, this adds real value when you sell.

Benefit 6: Investment Property Options

Buying rentals? Conventional loans work great for investment properties with straightforward underwriting based on property income.

Benefit 7: Wealth Building

Conventional financing is designed for those building wealth. Better rates, flexible terms, and scalable options support long-term financial growth.

Conventional vs. Other Loan Types

How Conventional Stacks Up

Feature	Conventional	FHA	VA
Down Payment	5-20%	3.5%	0%
Credit Score	620+	580+	No minimum
Mortgage Insurance	PMI (if <20% down)	MIP	No
Approval Speed	18-25 days	18-25 days	18-25 days
Interest Rates	Competitive	Competitive	Often best
Property Types	Most types	Limited	Most types
Best For	Qualified borrowers	First-time buyers	Veterans
Flexibility	High	Moderate	Moderate

Frequently Asked Questions

Answers to Your Conventional Loan Questions

What credit score do I need for a conventional loan?

Minimum 620, but you'll get better rates at 680+. Excellent credit (740+) gets you the best available rates.

How much down payment do I need?

Minimum 5% for most programs. 10-20% is common. More down payment = better rates and no PMI at 20%+.

What's PMI, and can I remove it?

PMI protects the lender if you default. You pay it if your down payment is less than 20%. Once you reach 20% equity, you can request removal (subject to appraisal and lender approval).

How long does conventional approval take?

Pre-approval: 24-48 hours. Full approval: 18-25 days. Faster than many alternatives.

Can I use a gift for a down payment?

Yes, but we need a gift letter stating the funds don't need to be repaid. Gifts from family are allowed.

Ready to Explore Conventional Financing?

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