What does a mortgage loan originator do vs. a bank?

A bank offers only its own loan products. A mortgage loan originator shops your loan across 175+ wholesale lenders to find the best rate, terms, and program for your situation.

How do I get pre-approved?

Apply through one of our lender portals or contact me directly. I will pull your credit, verify income and assets, and issue a full pre-approval letter, typically within 24 hours.

How much do I need for a down payment?

Conventional loans start at 3% down, FHA at 3.5%, and VA loans require zero down payment.

When does it make sense to refinance?

Generally when you can lower your rate by 0.5% or more, shorten your term, or access equity. The key is whether monthly savings outweigh closing costs within your planned timeframe.

A DSCR loan qualifies based on the rental income of an investment property rather than your personal income. No tax returns or pay stubs required.

What is PMI and how do I get rid of it?

PMI is required on conventional loans with less than 20% down. It drops automatically at 78% LTV, or you can request removal at 80% LTV.

Conventional Loans

Fannie Mae and Freddie Mac financing with removable mortgage insurance, as little as 3% down, and eligibility for primary, second home, and investment properties.

Conventional Loans at a Glance

Program Highlights

✓ As low as 3% down (first-time buyers)
✓ PMI removable at 80% LTV
✓ No upfront mortgage insurance fee
✓ Primary, second home, and investment eligible
✓ 15, 20, 25, and 30-year fixed terms
✓ Conforming limit: $806,500 (2026)

Who It's Best For

✓ Credit score 680+ (best rates at 740+)
✓ Stable income with 2-year history
✓ Buyers who want to avoid permanent MI
✓ Second home or investment buyers
✓ Borrowers with 5-20% down payment
✓ Those planning to build equity quickly

How Conventional Loans Work

Conventional loans are not backed by a government agency — they follow guidelines set by Fannie Mae and Freddie Mac. This means no upfront funding fees, no permanent mortgage insurance, and the widest range of property types and occupancy options. Your rate is based on credit score, LTV, and loan-level price adjustments (LLPAs). As a broker with access to 175+ wholesale lenders, I shop these adjustments across lenders to find you the best combination of rate and cost. Many borrowers assume FHA is cheaper — but for anyone with a 680+ score and 5%+ down, conventional often wins on total cost because PMI drops off while FHA MIP stays for life.

Conventional vs. FHA

Feature	Conventional	FHA
Min Down Payment	3%	3.5%
Min Credit Score	620	580
Mortgage Insurance	Removable at 80%	Life of loan*
Upfront Fee	None	1.75% UFMIP
Investment Property	Yes	No

*With less than 10% down

The Conventional Process

Pre-Approval

Credit, income, and assets reviewed. 620 is the floor; pricing improves sharply at 740+.

Shop & Lock

I compare loan-level price adjustments across wholesale lenders to find your best rate and cost combination.

Underwriting & Appraisal

Full documentation review and an appraisal to confirm value and loan-to-value.

Close & Build Equity

Close on a 15, 20, 25, or 30-year fixed term. PMI drops off once you reach 80% LTV.

Who Conventional Works Best For

First-Time Buyers

Down payments start at 3%, with no upfront mortgage insurance fee to finance into the loan.

Buyers Avoiding Permanent MI

PMI is removable at 80% LTV — unlike FHA, where mortgage insurance stays for the life of the loan.

Second Home & Investment Buyers

Conventional is the most flexible program for non-primary occupancy and a wide range of property types.

Credit-Strong Borrowers

At 680+ — and especially 740+ — conventional pricing typically beats government programs on total cost.

Try the Payment Calculator Compare Loan Programs

Get a Conventional Loan Quote

Andrew Baker · NMLS 2688601 · (949) 665-9090

Ready to Get Started?

Fill out our quick form or apply directly through one of our lender portals.

Apply Online Save My Contact Secure Upload Schedule a Meeting