Conventional loans are our most popular for a reason.
They can be used to purchase or refinance a home, borrowers can opt for fixed or adjustable interest rates, and the minimum down payment is 5%.
A 3% down payment option exists for first-time homebuyers and other qualifying borrowers.
Many homeowners that financed homes through FHA loans switch to a conventional when refinancing in order to drop monthly mortgage insurance payments.
With a conventional loan, after 20% equity is reached, mortgage insurance drops and borrowers can save thousands of dollars over the long term.