Conventional loans are a great choice for buyers with solid credit and steady income. Whether you’re purchasing a home or refinancing, we’ll help you explore fixed or adjustable-rate options that fit your long-term goals. Get competitive rates, straightforward terms, and expert guidance every step of the way.
A conventional loan is a home loan that isn’t backed by the government. It’s one of the most common options for buyers with solid credit and steady income. These loans often offer competitive rates, flexible terms, and can be used for both purchases and refinances.
Conventional loans typically require a higher credit score, stable income, and a manageable debt-to-income ratio. They’re a great option for buyers who have good financial standing and can meet standard lending guidelines without the need for government-backed support.
Conventional loans offer strong benefits, including lower costs over time, no upfront mortgage insurance on most options, and flexible loan terms. Borrowers can also remove private mortgage insurance (PMI) once they reach 20% equity, giving them more control over long-term savings.
Yes, many first-time buyers choose conventional loans. With down payment options as low as 3%, they provide flexibility without the stricter rules tied to government programs. They’re ideal for buyers who meet standard credit and income requirements and want more long-term control.
The main difference is that FHA loans are government-insured and allow for more flexible credit and income guidelines, while conventional loans require stronger financial credentials but may offer better long-term savings. We’ll help you compare both and choose what fits best.
Absolutely. Conventional loans are a popular option for refinancing, whether you want to lower your rate, shorten your term, or remove mortgage insurance. We’ll review your current loan and goals to help you see if refinancing with a conventional loan makes sense.
At LUMI Funding Group, we take the guesswork out of home financing. Based in California, our team of experienced mortgage brokers is committed to helping you find the right loan with clarity, speed, and personal support. We work with first-time buyers, investors, self-employed borrowers, and homeowners across a wide range of loan options — from conventional and jumbo to non QM and down payment assistance programs.
You’ll get straightforward answers, flexible solutions, and a team that keeps your goals front and center from start to finish.
Curious about how conventional loans work or what it takes to qualify? We’ve answered the most frequently asked questions to help you understand the basics, explore your options, and feel more confident as you move forward with your home financing plan.
A conventional loan is a mortgage that’s not backed by a government agency. It’s offered by private lenders and follows guidelines set by Fannie Mae and Freddie Mac. These loans are popular for buyers with solid credit and offer competitive rates and flexible terms.
Most lenders look for a credit score of at least 620 for conventional loan approval. A higher score can help you qualify for better rates and lower costs, but we’ll help you review your credit and find the best path forward.
You can qualify for a conventional loan with as little as 3% down if you’re a first-time buyer. A 20% down payment removes the need for private mortgage insurance (PMI), but lower down payment options are available and common.
Yes, if your down payment is less than 20%, you’ll pay private mortgage insurance (PMI). The good news is that PMI can be removed once you reach 20% equity, helping lower your monthly payment over time.
Absolutely. Conventional loans are often used for refinancing, whether you’re looking to lower your rate, change your loan term, or remove mortgage insurance. We’ll review your goals and help you decide if refinancing is the right move.
Conventional loans are ideal for borrowers with good credit, stable income, and moderate to low debt. They’re a great fit for homebuyers looking for long-term savings and flexibility without relying on government-backed programs.
To qualify for a conventional mortgage, you’ll typically need a credit score of at least 620, stable income, and a manageable debt-to-income ratio. Lenders also look for consistent employment history and may require a down payment as low as 3%, depending on the loan program. Stronger financials can help you qualify for better rates and terms.
