Conventional | 804Mortgage

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🏦 Conventional Mortgage · Richmond VA

Conventional Loans in Richmond, Virginia. Local. Fast. Competitive.

804Mortgage offers conventional loans in 30-year and 15-year fixed terms — with a local Richmond team that moves fast, gives straight answers, and has an in-house real estate team that saves you thousands more at closing.

✓ 3–5% Min Down Payment

✓ 620+ Credit Score

✓ No PMI at 20% Down

✓ NMLS #1904162

Conventional Loan — Quick Facts

Is This Loan Right for You?

Min. Down Payment3–5%

Min. Credit Score620+

Loan Limit (2025)$806,500

PMI RequiredUnder 20% down

Best ForStrong credit buyers

See If You Qualify →

Conventional Loan — At a Glance

The most widely used mortgage type in America, and a strong fit for buyers with solid credit and stable income.

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Requirements

✓ 620+ credit score
✓ 3–5% minimum down payment
✓ Stable employment history
✓ Debt-to-income ratio under 45%
✓ Loan under $806,500 (2025 limit)

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Best For

✓ Buyers with 700+ credit scores
✓ Move-up buyers with equity
✓ Those who can put 20% down
✓ Second home purchases
✓ Investment property buyers

⚠️

Not Ideal If...

✗ Credit score below 620
✗ Less than 3% to put down
✗ High debt-to-income ratio
✗ You're a veteran (VA loan may be better)
✗ First-time buyer with limited savings

What Is a Conventional Loan?

A conventional loan is a mortgage that isn't backed by a government agency — unlike FHA loans (backed by the Federal Housing Administration) or VA loans (backed by the Department of Veterans Affairs). Instead, conventional loans follow guidelines set by Fannie Mae and Freddie Mac, the government-sponsored enterprises that purchase most mortgages from lenders.

Because they carry more risk for lenders, conventional loans typically have stricter credit and income requirements than government-backed options. But for borrowers who qualify, they often offer competitive interest rates, flexible terms, and the ability to avoid mortgage insurance entirely with a 20% down payment.

In the Richmond VA market, conventional loans are the most common loan type — particularly for move-up buyers, second home purchases, and buyers with strong credit who want to maximize their purchasing power.

804Mortgage offers conventional loans in both 30-year and 15-year fixed terms. We’ll run your numbers, compare your options, and help you decide which product makes the most sense for your situation — without the pressure to close on something that doesn’t fit.

Conventional Loan Requirements

Min. Credit Score620 (740+ for best rates)

Min. Down Payment3% (first-time) / 5% (repeat)

PMIRequired under 20% down

2025 Loan Limit (VA)$806,500

Max Debt-to-Income45% (50% with compensating factors)

Property TypesPrimary, second home, investment

Loan Terms10, 15, 20, 25, 30-year fixed

30-Year vs. 15-Year Conventional Loan

Both are strong options — the right choice depends on your monthly budget and long-term goals.

30-Year Fixed

Lower monthly payment, longer payoff

Monthly PaymentLower

Interest RateSlightly higher

Total Interest PaidMore over time

Equity Build SpeedSlower

FlexibilityHigher (can pay extra)

Best for: Buyers who want lower monthly payments, maximum cash flow flexibility, or are buying at the top of their budget.

15-Year Fixed

Higher payment, significant interest savings

Monthly PaymentHigher

Interest RateLower

Total Interest PaidSignificantly less

Equity Build SpeedFaster

FlexibilityLower

Best for: Buyers who can comfortably afford higher payments, want to pay off their home faster, and want to minimize total interest paid.

Not sure which term is right for you? Call us and we'll run the exact numbers for your situation.

How Conventional Compares to Other Loan Types

Not sure if conventional is the right fit? Here's how it stacks up against other options we offer.

Feature	Conventional	FHA	VA	Jumbo
Min. Down Payment	3–5%	3.5%	0%	10–20%
Min. Credit Score	620	580	580–620	700+
Mortgage Insurance	Removable at 20%	Life of loan	✓ None	Removable at 20%
Loan Limit	$806,500	$524,225	No limit	Above $806,500
Investment Property	✓	✗	✗	✓
Second Home	✓	✗	✗	✓
Eligibility Restriction	None	None	Veterans / Military	None

How to Get a Conventional Loan With 804Mortgage

Simple, fast, and transparent from application to closing.

Apply or Call

Start your application online or call us directly. We'll confirm you meet the basic qualifying criteria right away.

Get Pre-Approved

We issue your pre-approval letter fast. You'll know your exact loan amount and be ready to make competitive offers.

Find Your Home

Shop with confidence. Our in-house real estate team can work alongside your mortgage for maximum savings.

Close

We handle the loan from application to closing table. Clear communication, no surprises, local team every step.

Getting a Conventional Loan With Us?
Add Real Estate and Save $6,000+ More.

Our in-house real estate team gives you half the buyer-agent commission back at closing — apply it to your closing costs or use it to buy down your conventional rate. No other Richmond lender offers this.

See How Bundle & Save Works →

Conventional Loan — Common Questions

What is a conventional loan and how is it different from FHA? +

A conventional loan is not backed by a government agency — unlike FHA loans (backed by the Federal Housing Administration). Conventional loans follow Fannie Mae and Freddie Mac guidelines and typically require higher credit scores but offer more flexibility, including the ability to buy investment properties, second homes, and the ability to remove mortgage insurance once you reach 20% equity. FHA loans are easier to qualify for but carry mortgage insurance for the life of the loan in most cases.

What credit score do I need for a conventional loan in Virginia? +

The minimum credit score for a conventional loan is 620. However, to qualify for the most competitive interest rates, a score of 740 or higher is ideal. Borrowers with scores between 620–739 can still qualify but may see higher rates or larger down payment requirements. If your score is below 620, an FHA loan may be a better option — and we'll walk you through all your choices.

How much do I need to put down on a conventional loan? +

First-time homebuyers can put as little as 3% down on a conventional loan. Repeat buyers typically need 5% minimum. Putting 20% down eliminates Private Mortgage Insurance (PMI), which can save $100–$300+ per month depending on your loan size. We'll help you model out the best down payment strategy for your specific situation.

What is the conventional loan limit in Virginia for 2025? +

The 2025 conforming loan limit for most Virginia counties — including Richmond, Henrico, Chesterfield, and Hanover — is $806,500 for a single-family home. Loans above this amount are considered jumbo loans and have different qualification requirements. If you're shopping in higher price ranges in Short Pump or other premium submarkets, we can walk you through jumbo loan options as well.

Can I use a conventional loan to buy an investment property in Richmond? +

Yes — conventional loans are one of the few mortgage types that allow investment property purchases. You'll typically need a 15–25% down payment for an investment property, a stronger credit profile, and cash reserves. FHA and VA loans are limited to primary residences. If you're looking at investment properties in Richmond, call us and we'll walk through the numbers with you.

Is a 30-year or 15-year conventional loan better? +

It depends on your budget and goals. A 30-year loan offers lower monthly payments and more flexibility — great if you want to keep cash flow open or are buying at the top of your budget. A 15-year loan has a lower rate and significantly less total interest paid over time — great if you can comfortably afford the higher payment and want to build equity faster. We'll run both scenarios with your actual numbers so you can see the real difference before you decide.