Conventional loan
The flexible default for steady W-2 buyers
As little as 3% down for first-time buyers, mortgage insurance that falls off, and terms from 10 to 30 years.
The short version.
A conventional loan follows the guidelines set by Fannie Mae and Freddie Mac, and it is the loan most of my Orlando clients end up with. If your credit is in decent shape and your income is easy to document, it usually delivers the lowest total cost over the life of the loan.
The biggest advantage over FHA is mortgage insurance. With less than 20% down you pay private mortgage insurance (PMI), but it drops off automatically once you reach 22% equity, and you can ask to remove it at 20%. On a $425,000 Lake Nona townhome that can mean roughly $140 a month back in your pocket a few years in (sample figure).
Often the right fit for
- Salaried and hourly W-2 earners
- Buyers with 680+ credit
- Second homes near the coast or parks
What I handle for you.
- Side-by-side comparison of 3%, 5%, 10% and 20% down
- PMI quotes from multiple insurers, not a default rate card
- Rate lock strategy based on your contract date
- Upfront underwriting so your offer reads like cash
- Weekly status text from contract to closing
- Closing Disclosure review call before you sign
Twenty-minute strategy call
We talk goals, budget comfort and timeline. No hard credit pull until you say go.
Verified pre-approval
I review pay stubs, W-2s and assets, then send an underwriter-reviewed approval letter.
Lock and close
Once you are under contract we lock, order the appraisal and target a 21 to 30 day close.
Why borrowers choose it.
PMI that goes away
Unlike FHA, mortgage insurance ends once you build equity.
Any property type
Primary homes, second homes and investment properties all qualify.
Competitive pricing
Strong credit is rewarded with better rate pricing tiers.
What moves your approval and price.
These are the factors I review first. Every lender adds its own overlays, which is why comparing matters.
| Factor | What to know |
|---|---|
| Credit score | Pricing improves in 20-point bands, with the best tiers at 780+. |
| Debt-to-income | Up to about 50% with strong compensating factors, 45% is more comfortable. |
| Down payment | Gift funds from family are allowed on primary residences. |
| Property | Condos need project approval, which I check before you write an offer. |
Conventional questions, answered.
Still wondering about something specific? Text or call and you will hear back from Marcus, usually within two hours.
No. First-time buyers can put as little as 3% down and repeat buyers 5%. Less than 20% simply adds PMI until you reach enough equity.
It cancels automatically at 22% equity based on the original schedule. You can request removal at 20%, and a new appraisal after home value growth can get you there sooner.
Yes, as long as the condo project meets Fannie Mae or Freddie Mac approval. I check the building before you commit so there are no surprises.
Related programs.
FHA loan
3.5% down with a 580 score, higher debt-to-income flexibility and gift-friendly down payment rules.
Explore FHA
Jumbo loan
Loan amounts above conforming limits with 10% down options and reserves-based underwriting.
Explore Jumbo
Refinance
Rate-and-term, cash-out, FHA streamline and VA IRRRL options, with a break-even analysis every time.
Explore Refinance
A note from Marcus
Get real answers in twenty minutes.
No credit pull, no pressure. Bring your questions and leave with a clear plan and real numbers.