Conventional is the loan every other program gets measured against — as little as 3% down for first-time buyers, mortgage insurance that actually cancels, and pricing that rewards the score you worked for. As a wholesale broker, I shop your loan across dozens of lenders so that reward shows up in the rate, not in a bank's margin.
Get My Conventional Quote → Run My NumbersFHA, VA, and the rest exist because conventional has requirements. But when you meet them, conventional usually gives the most back — lower long-term cost, more property types, and an exit ramp from mortgage insurance built right into federal law.
Fannie and Freddie both back 97% financing for qualifying first-time buyers — and "first-time" just means no home owned in the last three years. Everyone else starts at 5%.
Private mortgage insurance cancels automatically at 78% of original value and can be removed at 80% by request — no refinance required. Federal law, not lender mercy.
FHA charges 1.75% of the loan up front. Conventional charges nothing — on a $300,000 loan, that's $5,250 that never gets added to your balance.
Conventional pricing improves in credit tiers. The score you spent years building translates directly into a lower rate and cheaper PMI — we price it across dozens of lenders to prove it.
Seller-paid closing costs scale with your down payment — 3% at the low end, up to 9% with 25% down. Room we use when we structure your offer.
Second homes, investment properties, condos, owner-occupied duplexes at as little as 5% down — conventional goes where FHA isn't allowed to.
Your credit is roughly 680 or better. That's where conventional pricing starts beating FHA for most buyers — and by 740+ it's usually not close.
You have 5% or more to put down — or 3% and you qualify as a first-time buyer. Either way, you skip FHA's upfront 1.75% premium entirely.
You want mortgage insurance with an expiration date. PMI cancels at 20% equity. FHA's version, with minimum down, only leaves when you refinance.
You're buying a second home or rental. FHA is owner-occupied only. Conventional finances up-north places and investment properties — and if the deal is rental-first, we'll run a DSCR loan beside it.
The house is under $832,750. That's the 2026 conforming ceiling for every Michigan county — which covers nearly everything in the state.
You're moving up and selling later. Conventional plays cleaner with contingencies, departure-home rental income, and bridge strategies when timing gets tight.
Credit still rebuilding, or down payment under 5% without first-time status? FHA was built for exactly that — and it's a fine place to start, not a consolation prize. Eligible for VA? Your VA benefit likely beats both.
Put down less than 20% on a conventional loan and you'll pay private mortgage insurance. Nobody loves it. But conventional PMI deserves a fair hearing, because it's a different animal from FHA's version.
First, the price isn't fixed — it's scored. Strong credit can mean surprisingly cheap PMI; we also shop the PMI itself, because wholesale lenders use competing insurers.
Second, it ends. By federal law, PMI cancels automatically when your balance hits 78% of the original value, and you can request removal at 80% — sooner if appreciation has done the work and a new value supports it. No refinance, no fee to escape.
And if you're close to 20% down, we'll run the math on getting there versus keeping cash in reserve. Sometimes paying PMI for a year beats emptying your savings account. That's a numbers conversation, and you don't have it alone — the Cash to Close tool is where we start.
Conventional usually wins when your credit is roughly 680+ and you can put 5% or more down — no upfront premium, and PMI cancels on its own at 20% equity.
FHA usually wins when your score is in the 580–670 range, your down payment is 3.5%, or your DTI runs high — FHA pricing doesn't climb with lower scores the way conventional pricing does.
You shouldn't have to guess. I run every buyer both ways and show you the side-by-side. You pick with real numbers in front of you.
A quote is free, there's no obligation, and a soft pull is all it takes to price your real scenario across dozens of lenders. Twenty years in, I can tell you no two files look alike — we'll figure it out.
Get My Conventional Quote → Call / Text (248) 491-8998