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Conventional loan

The most common way to buy, and often the cheapest.

Strong credit and steady income usually make a conventional loan your lowest-cost path. Put as little as 3% down, and the mortgage insurance comes off once you have built enough equity.

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At a glance

Conventional loan

Minimum down3% first-time, 5% repeat
Minimum credit620
Mortgage insuranceRemovable, unlike FHA
Loan limitUp to $832,750
Today's rateCall for today's rate
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Is a conventional loan right for you?

It rewards strong credit and steady income with a lower long-term cost.

Conventional loans are not backed by a government program, so lenders set clear credit and down-payment bars. Clear them and you usually pay less over the life of the loan than with FHA. The trade-off is that the bar is higher up front.

You do not need 20% down. First-time buyers can start at 3%, repeat buyers at 5%. Below 20% you pay private mortgage insurance — PMI, a monthly add-on that protects the lender, typically $100 to $300 depending on loan size. You can ask for it to be removed once you reach 20% equity, and it comes off automatically at 22%.

Compare with an FHA loan
What you'll need
Down paymentFrom 3% on a primary home
Second home / rental10% and 15%+ respectively
Credit score620 minimum, 740+ for best pricing
Debt-to-incomeUp to about 45%
PMIRequest removal at 20% equity
Property typesPrimary, second, rental
Loan limit$832,750 (2026 baseline)

From question to keys, in four steps

1

Pre-approval

A few minutes online tells you what you can offer.

2

House hunt

Shop with a number you trust and an agent on your side.

3

Underwriting

We handle the paperwork and keep the timeline moving.

4

Closing

Sign, fund, and get the keys.

30-year or 15-year

Two terms, two very different totals

A 30-year fixed keeps the monthly payment low and is what most Richmond buyers choose. A 15-year fixed costs more each month but far less in total interest.

We will model both against your actual numbers before you commit, so the choice is yours rather than the default.

A brick home with an arched window and a white front door

Buying with a conventional loan?

Use our in-house agents and half the buyer-agent commission comes back to you — about $6,000 on a $400,000 home at a 3% buyer-agent commission.

See Bundle & Save

Conventional loan questions

How much do I really need to put down?
As little as 3% for a first-time buyer on a primary home, or 5% for a repeat buyer. A second home starts at 10% and an investment property at 15%. More down lowers your payment and reaches the PMI threshold sooner, but you do not need 20% to start.
What is PMI, and when does it stop?
PMI is private mortgage insurance, a monthly cost while your equity is under 20%. It typically runs $100 to $300 a month depending on loan size. You can request removal at 20% equity, and it terminates automatically at 22%. That is unlike FHA, where the insurance usually stays for the life of the loan.
What credit score do I need?
620 is the minimum for most conventional loans. The best pricing starts around 740. If you are between the two, we will tell you what moving up a tier would be worth before you apply.
What rate will I get?
Rates move daily and depend on your credit, down payment and the property. Call for today's rate and we will give you a real number rather than a teaser.

See your real numbers in five minutes

Pre-approval is free, quick, and commits you to nothing.

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Or call (804) 593-0344