Conventional Home Loans
Often referred to as the “Traditional Mortgage”, a conventional loan is a great way to finance the purchase of a home and will typically appeal to buyers that have good credit and money for a down payment. If you’re a buyer with less than perfect credit or need a lower down payment option, the conventional loan may not be right for you. Every loan program has its pros and cons and we will help find the best fit for your situation when we run thru the loan application.
Pros for conventional loan?
- As little as 3% down for owner occupants
- For investors; 15% down single family and 25% down 2-4 units
- Great Rates
- Low private mortgage insurance (PMI) with good credit
- PMI monthly premiums “drop off” (must meet requirements)
- No PMI required if down payment is 20% or more
- Most lenient appraisal process
- Appraisal Waivers available
- Works with down payment assistance programs like MSHDA for people in Michigan
- 15, 20, & 30 year options are available
- Ability to finance in renovations with the Conventional Homestyle Loan
Cons to conventional loans
- Rates are based on credit score; the lower the score the higher the rate
- 620 is the minimum credit score where other programs allow for lower scores (exception is some averaging of credit scores)
- PMI premiums can be higher if the credit scores are low
- Guidelines for a borrower to qualify are stricter compared to other loan programs
Conventional loans are one of the best options out there for many home buyers. Everyone’s situation is different call us today at 269.360.7109 to start the process and figure out the best program for you!
Latest Blog Post
FHA vs Conventional Loan for First Time Buyer in Portage MI: Your 2026 Flight Plan
What if the traditional advice you’ve heard about down payments is actually the very thing keeping your homeownership dreams grounded? Deciding between an FHA vs conventional loan for first time buyer in Portage MI often feels like preparing for a high-stakes takeoff. It’s completely natural to feel a bit of turbulence when you’re staring down credit requirements or confusing mortgage insurance terms. You want to ensure your financial foundation is secure before you leave the runway, yet the fear of rejection can make the whole process feel like a gamble rather than a significant life milestone.
We believe every neighbor deserves a clear flight plan that replaces anxiety with expert guidance. In this detailed comparison, you’ll discover which mortgage path provides the smoothest ascent for your specific situation in the 2026 market. We’ll break down the latest loan limits, compare monthly costs, and show you how to layer MSHDA assistance to give your down payment some extra lift. By the time we finish, you’ll have the confidence to choose the right loan and successfully pilot your way to a new front door in Portage.