The Gold Standard of Home Financing
No government backing, no red tape — just competitive rates and straightforward terms for borrowers with solid credit and income history.
3%
Min. Down Payment
620
Min. Credit Score
$832,750
Conforming Loan Limit
Cancellable at 20%
PMI
What is a conventional loan?
A conventional loan is a mortgage not backed by a government agency (like FHA or VA). Instead, it follows guidelines set by Fannie Mae and Freddie Mac. Conventional loans offer competitive rates, flexible terms, and PMI that cancels once you reach 20% equity — making them the most popular mortgage type in America.
Best for: Buyers with good credit and stable income who want competitive rates without government-loan restrictions.
3%
Min. Down Payment
620
Min. Credit Score
$832,750
Conforming Limit
50%
Max DTI
20% Equity
PMI Cancels At
Overview
The Most Widely Used Loan in America
Conventional loans are mortgages not backed by a government agency — instead, they conform to guidelines set by Fannie Mae and Freddie Mac. Because they carry no government guarantee, lenders apply stricter credit standards, but reward strong borrowers with some of the most competitive interest rates available.
At Lumen Mortgage, we offer conventional loans for primary residences, second homes, and investment properties. Whether you're putting down 3% or 30%, we'll find the right term, structure, and rate for your situation.
Who This Is For
Key Features
What Makes This Program Work
Competitive Rates
Conventional loans consistently offer some of the lowest rates on the market for borrowers with strong credit.
PMI Cancellable
Unlike FHA, private mortgage insurance drops off automatically once you reach 20% equity — saving you thousands.
All Property Types
Primary residences, second homes, condos, multi-unit (1–4), and investment properties all qualify.
Fixed & ARM Options
Choose a predictable 15- or 30-year fixed rate, or a lower-starting ARM (5/1, 7/1, 10/1) that fits your timeline.
Low Down Payment
Qualifying first-time buyers can put down as little as 3% through Fannie Mae HomeReady and Freddie Mac Home Possible programs.
Flexible for Refis
Whether you're lowering your rate, shortening your term, or pulling cash out, conventional refinance options are fast and cost-effective.
Have questions about this loan?
Talk to an Expert — Free Consultation
Get a personalized rate quote with no impact to your credit score.
Conventional Loan & PMI Calculator
See your exact monthly PMI cost based on your credit score bucket, down payment, and loan size — plus the precise month your PMI cancels and how much you'd save by improving your FICO score one tier.
Conventional Loan & PMI Calculator
FICO-based · Occupancy-adjusted · Fannie Mae / Freddie Mac · 2025
PMI Details
Est. Monthly Payment
$2,933.99
Payment Breakdown
Loan Amt
$495,000
LTV
90.0%
PMI Rate
0.30%
Total PMI
$10,395
PMI Cancellation
Cancellable at month 84
7yr · 80% LTV balance
Saves
$123.75/mo
PMI rates are representative BPMI (Borrower-Paid Monthly Insurance) annual rates for 30-yr fixed, primary residence conventional loans conforming to Fannie Mae / Freddie Mac guidelines as of 2025. Actual rates are set by private mortgage insurers and vary by insurer, loan structure, and individual underwriting. PMI cancellation is governed by the Homeowners Protection Act (HPA). All results are estimates only and do not constitute a loan commitment. Lumen Mortgage Corporation · NMLS #1498678 · Licensed in Oregon & California.
The Process
How It Works
Pre-Qualification
Share basic income, credit, and asset info. We'll confirm your loan amount and rate range in minutes.
Application & Lock
Complete your full application and lock in your rate. We'll order the appraisal and begin processing.
Underwriting
Our in-house underwriters review your file for approval. We'll let you know if we need anything additional.
Clear to Close
Final approval issued. You'll receive your Closing Disclosure at least 3 days before closing.
Close & Fund
Sign your documents, pay closing costs, and get your keys. Funds typically disburse the same or next business day.
Requirements
General Qualifications
Ready to See If You Qualify?
Every borrower's situation is unique. Give us 15 minutes and we'll review your financial picture, identify every program you qualify for, and walk you through your options — at no cost and with no obligation.
Licensed in Oregon & California · NMLS #1498678
FAQ
Common Questions
Side-by-Side Comparison
How Does Conventional Compare?
Compare key requirements, costs, and features at a glance — so you can choose the right loan for your situation.
Conventional vs. FHA vs. VA — Side by Side
For a primary residence purchase in Oregon or California
| Conventional | FHA | VA | |
|---|---|---|---|
| Min. Down Payment | 3% | 3.5% | 0% |
| Min. Credit Score | 620 | 580 | 580–620 |
| Mortgage Insurance | PMI — cancels at 20% equity | MIP — life of loan (if <10% down) | None — no PMI/MIP ever |
| Max DTI | 43–50% | Up to 57% | No hard cap (residual income) |
| Property Types | Primary, second home, investment | Primary only (1–4 unit) | Primary only (1–4 unit) |
| Conforming Limit (2026) | $832,750 | $832,750 (FHA floor limit varies) | No limit (full entitlement) |
| Seller Concessions | 3–9% (varies by LTV) | Up to 6% | Up to 4% |
| Upfront Fee | None | 1.75% UFMIP | VA Funding Fee (1.25–3.3%) |
From the Blog
Further Reading
Loan TypesFHA vs. Conventional Loans: Which Is Right for You?
These two loan types cover the majority of home purchases in the U.S. — but they work very differently. Here's a side-by-side breakdown to help you make the right call.
First-Time BuyersWhat Credit Score Do You Need to Buy a Home in 2026?
Your credit score is one of the first things lenders look at — but the minimum varies by loan type. Here's a clear breakdown of what's required and how to improve your score before you apply.
RefinancingWhen Does It Make Sense to Refinance Your Mortgage?
Refinancing can save you thousands — or cost you thousands. Here's a straightforward framework for deciding whether a refi makes sense for your situation right now.
What Our Clients Say
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Ready to Get Started?
Our loan officers will review your scenario, walk you through your options, and guide you from application to close — with full transparency at every step.