By Ryan Singer, NMLS #1520306 · Updated October 22, 2026Conventional loans aren't backed by a government agency. Most follow Fannie Mae and Freddie Mac guidelines and are the most common mortgage type in the country. They're a strong option for borrowers with solid credit and are available as fixed-rate or adjustable-rate loans.
Why choose a conventional loan
- Down payment options start as low as 3% for some first-time buyers and qualifying programs.
- Removable mortgage insurance: with less than 20% down, private mortgage insurance (PMI) applies. You can generally request removal at 20% equity based on the original value, and it's automatically terminated at 22% under the Homeowners Protection Act, if you meet the requirements.
- Flexible property types: primary homes, second homes and investment properties.
- Fixed-rate terms: 30-, 20- and 15-year fixed loans give you a predictable principal-and-interest payment for the life of the loan.
- No funding fee or upfront government mortgage insurance premium.
Fixed rate vs. adjustable rate
A fixed-rate mortgage keeps the same interest rate for the life of the loan. An adjustable-rate mortgage (ARM) has an initial fixed period, then adjusts based on an index and margin within set caps. ARMs can make sense if you expect to move or refinance before the adjustment period. Fixed rates offer certainty. I'll walk you through the trade-offs in plain language.
Conventional refinances
Conventional rate-and-term and cash-out refinances can lower your payment, shorten your term, remove FHA mortgage insurance, or turn equity into cash. See refinancing options for when it makes sense and how to estimate your break-even.
Investment and second homes
Independence Home Loans also offers financing for vacation homes and investment properties. Requirements such as down payment, reserves and pricing differ from primary residences, so let's talk through your plans.
Why work with Ryan Singer
I've been helping families finance homes since 2004, and I lend nationwide through Independence Home Loans (licensed in 46 states + DC). VA loans are the core of my business, but I work with every major program, so you get an honest comparison rather than a single product pitch. Expect plain-language explanations, written side-by-side options, and a loan officer who stays involved from application to closing. You can reach me directly at (602) 741-2370 or (480) 300-7769.
Frequently asked questions
What credit score do I need for a conventional loan?
Requirements depend on the program and lender, and stronger credit generally gets better pricing. Share your situation and I'll tell you where you stand.
When does PMI go away?
You can generally ask to cancel PMI when your balance reaches 80% of the original value, and it ends automatically at 78% if you're current, under the Homeowners Protection Act. Some loans allow removal based on a new appraisal.
Should I choose a 15- or 30-year fixed?
A 15-year loan builds equity faster and costs less interest overall but has a higher payment. A 30-year loan keeps the payment lower and leaves more flexibility.