Conventional Loans for Strong Credit & Down Payment

Conventional loans are the most common mortgage option for borrowers with credit scores above 620 and down payments from 3 percent. Competitive rates, lower insurance costs, and flexible terms make conventional financing the gold standard.

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Conventional Snapshot

Min Credit Score 620+

Down Payment 3% to 20%

Loan Limit $806,500 (SoCal)

Mortgage Insurance PMI removed at 80% LTV

Max DTI Ratio 45%

Best Pricing At 740+ Credit Score

Key Features

What Makes Conventional Loans Stand Out

Conventional loans dominate the market because they balance competitive pricing with reasonable qualification standards. They work best for borrowers with solid credit, stable income, and down payment savings.

Credit Score

620 to 740+

Scores above 740 qualify for the best rates. 620 to 659 remains viable with a larger down payment and strong compensating factors.

Down Payment Options

3% to 20%

3 percent down opens eligibility for first-time buyers. 20 percent eliminates PMI entirely from day one, reducing the monthly payment immediately.

Debt to Income

Up to 45%

Calculate housing costs plus all other monthly obligations against gross income. Flexibility increases with stronger credit and larger down payments.

PMI Removal

At 80% LTV

Unlike FHA, conventional PMI is not permanent. Once your loan balance reaches 80 percent of the home value, PMI can be removed, lowering your payment.

Ready to Explore Conventional Financing?

If you have solid credit and down payment savings, conventional loans offer competitive rates and straightforward qualification. Connect with Troy directly to review your file and identify the best path forward.

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