Loan program
Conventional Loans
The most common home loan. Often the best fit for buyers with solid credit, and a way to avoid unnecessary fees.
- Down payment as low as 3%
- Credit score as low as 620
- PMI can be cancelled
A conventional loan is a mortgage that isn't backed or insured by a government agency like the FHA, VA, or USDA. Instead, it follows guidelines set by Fannie Mae and Freddie Mac, which is why you'll also hear it called a conforming loan.
For buyers with good credit and a stable income, conventional financing often means flexible terms, competitive interest rates, and fewer built-in fees. And unlike FHA loans, the mortgage insurance on a conventional loan goes away once you've built enough equity.
Why buyers choose a conventional loan
Flexible terms and competitive rates
Strong credit is rewarded with better pricing. Choose a fixed or adjustable rate and a term from 10 to 30 years.
No upfront mortgage insurance premium
Unlike FHA loans, there's no upfront insurance fee added to your loan balance.
Mortgage insurance you can cancel
Put less than 20% down and you'll pay private mortgage insurance, but you can request to remove it once you reach 80% loan-to-value.
Higher loan amounts
Conforming limits are generous enough for most Arkansas homes, and jumbo financing is available above them.
Flexible property standards
Conventional appraisals are generally less strict about property condition than government-backed programs.
Help with closing costs
Seller concessions, lender credits, gift funds from family, and down payment assistance programs can all reduce what you bring to closing.
Who it’s a good fit for
- Buyers with credit scores above 620 and a steady employment history
- Anyone who wants mortgage insurance that can be cancelled
- Homeowners refinancing out of an FHA loan once they reach 80% loan-to-value
What lenders look at
Your credit score, employment history, debt-to-income ratio, assets, and the appraised value of the property all factor in. Owed taxes or an IRS lien don't automatically disqualify you, but they can make approval harder. We'll tell you where you stand before you apply.
Common questions
How much do I need to put down on a conventional loan?
Some conventional programs allow as little as 3% down for qualified buyers, and 5% is common. Putting 20% down avoids private mortgage insurance entirely, but it isn't required.
What credit score do I need?
Generally 620 or higher. Higher scores unlock better interest rates and lower mortgage insurance costs, so it can pay to improve your score before you apply. We can show you how much difference a few points make.
Can I use gift money for my down payment?
Yes. Gift funds from family, an employer, or a close friend are allowed with a gift letter and proof of the transfer. We'll walk you through the documentation.
Ready to explore a conventional loan?
Tell us a little about your plans and a local loan originator will compare your options across our lender network. It's free, and there's never any pressure.