Overview
A conventional mortgage is a home loan that falls under the conforming loan limit of $806,500 (2025), and can be as high as $1,209,750 in high-cost areas. Through American Pacific Mortgage, these loans offer fixed interest rates with typically 15 or 30-year terms, making them ideal for buyers with down payments or existing equity.
Competitive Rates
Access some of the most competitive interest rates available in the market.
Flexible Down Payments
Down payments as low as 3% for qualified first-time buyers.
No Upfront Fees
Unlike FHA loans, no upfront mortgage insurance premium required.
PMI Removal
Private mortgage insurance can be removed once you reach 20% equity.
Key Features
- Requires higher credit scores (typically 620+)
- Allows slightly smaller down payments (as low as 3%)
- Has more liberal property standards
- Private mortgage insurance (PMI) required if less than 20% down
BEST FIT
If you have good credit (typically 620+) and can make a down payment, a conventional loan offers competitive rates and flexible terms. This is ideal for borrowers who want the ability to remove mortgage insurance once they reach 20% equity and prefer more liberal property standards.
BENEFITS
Conventional loans provide excellent flexibility and competitive rates for qualified borrowers. With down payments as low as 3% for first-time buyers and no upfront mortgage insurance premium (unlike FHA loans), conventional loans are a popular choice. The private mortgage insurance (PMI) required for down payments under 20% can be removed once you build 20% equity, potentially saving you money over the life of the loan. For 2025, conforming loan limits are $806,500 in most areas and $1,209,750 in high-cost areas, making conventional loans suitable for a wide range of home prices.