❌ VA Loan Myths That Could Be Holding You Back
⚖️ Conventional vs. FHA Loans: Which Is Right for You?
Everything you need to know about the most popular mortgage in America.
If you’re starting your home loan journey, there’s a good chance you’ll come across the term “conventional loan.”
It’s the most widely used type of mortgage — but many buyers and homeowners aren’t quite sure what it actually means, or how it compares to other loan types.
Let’s break it down simply.
Here’s what a conventional loan is, who it’s best for, and how to know if it’s the right fit for your next home purchase or refinance.
✅ Conventional Loan, Defined
A conventional loan is a mortgage that is not backed by a government agency like the FHA, VA, or USDA.
Instead, it follows guidelines set by Fannie Mae and Freddie Mac, the two major mortgage rulemakers in the U.S.
That means:
- It’s issued by private lenders (like PRMI)
- It’s available to a wide range of buyers
- It often comes with lower long-term costs than government-backed loans
📊 What Are the Benefits of a Conventional Loan?
- Low down payment options (as little as 3%)
- No upfront mortgage insurance fee (like FHA)
- PMI can be removed once you hit 20% equity
- Used for primary homes, second homes, and investment properties
- Often lower total cost for buyers with strong credit
💡 The better your credit score, the more you can save with a conventional loan.
🧠 Who Is a Conventional Loan Best For?
- Buyers with average to excellent credit
- Homeowners looking to refinance into a more flexible loan
- Buyers with 5–20% down payment
- People purchasing second homes or investment properties
We’ll help you see how conventional compares to other options — like FHA or VA — based on your exact financial picture.
🔁 Can You Refinance With a Conventional Loan?
Yes — and it’s one of the most common reasons people switch to conventional.
You might refinance into a conventional loan to:
- Drop mortgage insurance from an FHA loan
- Lower your monthly payment
- Change your loan term (e.g., 30-year to 15-year)
- Consolidate debt through a cash-out refinance
📘 Conventional loans are highly customizable — and we’ll help you structure it around your goals.
💬 Is It Harder to Qualify?
Conventional loans do have stricter requirements than some government loans:
- Credit score typically needs to be 620 or higher
- Down payments under 20% require PMI (Private Mortgage Insurance)
- Debt-to-income ratios are considered more carefully
But don’t let that discourage you — we work with buyers at all stages of the credit spectrum to help get you qualified and confident.
🏢 Why PRMI?
At PRMI, we help you:
- Compare conventional vs. FHA, VA, and non-QM options
- Get pre-approved with clear numbers and next steps
- Close your loan with in-house processing and underwriting
We’re a direct lender — so you work with one team, from quote to close.
👇 Wondering If a Conventional Loan Is Right for You?
Let’s look at your budget, goals, and credit profile — and match you with the best loan for your situation.