Most common
Conventional loans: flexible terms for many buyers.
Conventional loans are not insured by a government agency and are the most common type of mortgage. They work for primary homes, second homes, and investment properties, with a range of down payment and term options.
Talk with TroyMay be a good fit if…
- You have steady income and established credit.
- You want mortgage insurance that can be removed later.
- You are buying a second home or investment property.
What to know
Down payment options
Some programs allow as little as 3% down for qualifying buyers. Putting 20% down avoids private mortgage insurance.
Removable PMI
Private mortgage insurance can be cancelled on request once you reach 20% equity, and ends automatically at 22% equity based on the original schedule.
Fixed or adjustable
Choose a fixed rate for a steady principal-and-interest payment, or an adjustable rate whose payment can change after an initial period.
Questions worth asking
- How does my down payment change my PMI and monthly payment?
- Is a 15-year or 30-year term a better fit for my goals?
- What is the conforming loan limit where I am buying?
Frequently asked questions
What is the difference between FHA and conventional loans?
FHA loans are government-insured and have more flexible credit guidelines, but mortgage insurance often lasts longer. Conventional loans usually reward stronger credit and let you remove PMI once you build enough equity.
Can I avoid PMI on a conventional loan?
Yes, by putting at least 20% down. With less down, PMI can be cancelled later once you reach 20% equity.
Can I use a conventional loan for a rental property?
Yes. Conventional loans can finance investment properties, usually with a larger down payment than a primary residence.
Related reading
Want advice for your situation?
Troy (Thuy Kim) Huynh, California real estate broker DRE #01889229 and mortgage loan originator NMLS #344740, broker associate with Century Financial Group, Corp. (DRE #01930905). Loans are offered only in states where Troy Huynh is licensed — see NMLS Consumer Access. Not a commitment to lend; all loans are subject to credit and underwriting approval. Contact: (714) 452-8081.