Conventional loans
A conventional mortgage built around your goals.
Conventional loans are the most widely used mortgage program in the country and often the cleanest path for buyers with solid credit and a reasonable down payment. Belong Lending shops multiple wholesale lenders to help you find the conventional program that fits your purchase or refinance.
What is a conventional loan?
A conventional loan is any mortgage that is not backed by a government program like FHA, VA, or USDA. Most conventional loans in the United States follow guidelines set by Fannie Mae or Freddie Mac, which is why they are also called "conforming" loans.
Because there is no government guarantee, conventional loans lean more heavily on the borrower's credit, income, and down payment. In exchange, they usually offer competitive interest rates, a wide range of loan terms, and none of the upfront funding fees that FHA, VA, and USDA loans carry.
Down payment and mortgage insurance
Conventional loans allow down payments as low as 3% for eligible first-time buyers through programs like Fannie Mae HomeReady and Freddie Mac Home Possible. Most repeat buyers put down at least 5%, and many aim for 20% to avoid Private Mortgage Insurance (PMI).
PMI is required when the down payment is less than 20%, but unlike FHA mortgage insurance, PMI drops off automatically once the loan is paid down to 78% of the original property value.
Refinance options
Conventional refinances are available for rate-and-term (to lower the payment or shorten the term) and cash-out (to tap into home equity). Cash-out limits are generally up to 80% of the home's appraised value on a primary residence.
Key benefits
- Down payments from 3% for eligible buyers
- No upfront mortgage insurance premium
- PMI drops off automatically at 78% loan-to-value
- Flexible loan terms — 10, 15, 20, 25, and 30 years
- Available for primary residences, second homes, and investment properties
Who this loan fits best
- Buyers with credit scores at or above 620
- Borrowers who want to avoid FHA's upfront and lifelong mortgage insurance
- Second-home and investment-property purchases
- Refinancers looking to remove FHA mortgage insurance
Estimate your monthly payment
Conventional payment calculator
Estimate only. Actual rate, taxes, insurance, and mortgage insurance depend on your specific loan and property. Belong Lending confirms your exact payment at pre-approval.
Serving Detroit and surrounding Michigan communities
Belong Lending helps borrowers with Conventional loans across Detroit, Troy, Southfield, Ann Arbor, Flint, Livonia, Warren, Sterling Heights, Farmington Hills, Novi, Rochester Hills, Dearborn, and beyond — plus additional coverage throughout Wayne County, Oakland County, Macomb County, Washtenaw County, Livingston County, Genesee County. We also lend on eligible properties in Ohio, Florida, Georgia, and Texas.
Frequently asked questions
What credit score do I need for a conventional loan?
Most conventional loans require a minimum credit score of 620. Rates and mortgage insurance costs improve as your score rises, especially at 680, 720, and 740.
How much down payment do I need for a conventional loan?
Conventional loans allow as little as 3% down for eligible first-time buyers through programs like HomeReady and Home Possible. Most repeat buyers put down 5% or more, and 20% down eliminates Private Mortgage Insurance.
Do I have to pay mortgage insurance on a conventional loan?
Only if your down payment is under 20%. Private Mortgage Insurance (PMI) drops off automatically once your loan reaches 78% of the original property value, unlike FHA mortgage insurance which typically stays for the life of the loan.
What is a conforming loan?
A conforming loan is a conventional loan that falls at or under the loan limit set annually by the Federal Housing Finance Agency (FHFA). For 2026, the baseline conforming limit is $806,500. Loans above that are called jumbo loans.