Conventional Loans
Conventional loans usually require a higher down payment than FHA loans, often around 5% to 20% of the purchase price. Credit requirements are typically stricter, with lenders looking for a score of at least 620.
Borrowers with excellent credit may secure a lower interest rate and better terms. Conventional loans can be used for a variety of property types, including single-family homes, multi-unit properties, and condominiums.
Conventional Loan Characteristics
Not government-backed; subject to the lender's guidelines and underwriting standards
Higher down payment, typically 5% to 20%
Stricter credit requirements (commonly 620+)
Excellent credit can earn lower rates and better terms than FHA
Fixed or adjustable interest rate options
Usable for single-family homes, multi-unit properties, and condominiums
No mortgage insurance required with 20% or more down
Refinance options including cash-out and rate-and-term
5) Conventional loans offer options for fixed or adjustable interest rates
6) Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums
7) Conventional loans do not require mortgage insurance if the borrower puts down at least 20% of the purchase price
8) Conventional loans offer options for refinancing, including cash-out refinancing and rate-and-term refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.
Need more information?
This is not an offer to enter into an agreement. This is not a commitment to make a loan. Not all customers will qualify. Information, rates and programs are subject to change without prior notice. All products are subject to credit and property approval. All approvals are subject to underwriting guidelines. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations may apply. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit standards, and property limits. NEXA Mortgage, LLC is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. Copyright © 2026 NEXA Mortgage, LLC NMLS#1660690. AZBK #2006218. 5559 S Sossaman Rd Bldg #1 Ste #101 Mesa, AZ 85212, 602-344-9333. www.NEXALending.com NEXA Mortgage, LLC is an Equal Housing Lender | Equal Housing Opportunity. All rights reserved.