Conventional Loans

Traditional home loans with flexible terms. Pricing depends on your file and the market.

What is a Conventional Loan?

Conventional loans are traditional mortgages not backed by government agencies like FHA, VA, or USDA. Terms, pricing, and overlays depend on the investor and your documentation.

Flexible Down Payment

As low as 3% down payment for qualified buyers

No PMI with 20% Down

Eliminate private mortgage insurance with a 20% down payment

Pricing follows the file

Interest rate depends on credit, down payment, occupancy, and the market. There is no single advertised rate on this page.

Flexible Terms

Choose from 15, 20, or 30-year fixed-rate terms

Conventional Loan Requirements

Credit Score

• 620 (overlays often higher)
• Higher scores often improve pricing, but there is no single “best rate” score

Down Payment

• Some first-time and low-down conventional products start around 3% down for eligible borrowers.
• 20% down is the common path to avoid PMI, not a requirement to apply. See wait for 20% vs buy sooner
• Gift funds are often allowed when the donor is eligible and the paper trail is complete. Program overlays still apply.

Debt-to-Income Ratio

• Many files target at or below about 45% backend DTI. Higher DTI is sometimes possible with strong compensating factors. It is not a ceiling you can assume.
• Lower DTI can help, but it is not a guarantee of approval
• Underwriters count monthly debts the investor requires, not a DIY list

Employment

• Many files look for about two years of history
• Documented income; variable income is averaged, not ignored
• Self-employed options exist with a different document stack

Conventional vs. FHA Loans

Conventional Advantages

• No upfront mortgage insurance
• PMI can often be removed with equity — how it ends: MIP vs PMI; servicer mechanics: original value vs new appraisal
• Higher loan limits
• More flexible terms

FHA Advantages

• Lower credit score requirements
• Lower down payment (3.5%)
• More lenient DTI ratios
• Government-backed

Ready to Apply?

Calculate Your Payment Wait for 20% down?PMI removal mechanics How PMI vs MIP ends Talk with a loan officer

Is this program a fit for the file?

Use this as a map of typical overlays, not a score. A loan officer still has to apply the guide that is in force for your product and your documentation.

Typical program differences as of 2026-08. Confirm current published rules.

Swipe sideways to compare every column.

Question	Conventional	FHA	Jumbo
Credit (typical overlay, not a promise)	620 (overlays often higher)	HUD allows 580+ for 3.5% down and 500–579 with 10% down. Many lenders set higher overlays. A 500 score is not a promise that a file will be originated.	Investor overlays; often stronger than conforming conventional. Not a published floor.
Down payment / equity	Some first-time and low-down conventional products start around 3% down for eligible borrowers.	3.5% down at 580+ under HUD policy; overlays often sit higher. 10% at 500–579.	Often 10–20% depending on loan size and reserves. Overlay, not a statute.
Occupancy	Primary, second home, and investment, each with different pricing and overlays.	Primary residence (with limited exceptions)	Primary, second home, and investment exist as overlays. Pricing and down payment change with occupancy.
Property type	1–4 units, condos and PUDs when the project meets investor rules.	1–4 units as a primary. Condos need FHA project approval. HUD minimum property standards apply.	Project and property overlays are investor-specific. High-cost condos can be harder than detached.
MIP / PMI / funding fee / guarantee fee	Conventional PMI can usually be removed once the loan reaches the investor’s equity threshold (commonly 20% based on original value, or by a new appraisal under the program rules).	Upfront MIP 1.75% of the base loan amount (often financed). Annual MIP is a range that depends on term, loan amount, and LTV. It is not a single published percent for every file. Life-of-loan MIP is common below 10% down.	Some jumbo files have no monthly PMI at lower LTVs. Others price risk into rate. Compare Loan Estimates.
Loan limits	FHFA conforming limit for the property county. Look up this year’s table.	HUD FHA county limit. Different table from FHFA. Look up the property county.	Any amount above the FHFA conforming limit for that county. Not a single Utah-wide number.

Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision.

What to do next

Education first. A conversation with a loan officer is how you find out what may actually fit your file.

Talk through conventional options FHA loans in Utah

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures