Conventional Loans
Conventional loans for qualified buyers.
Not backed by the government, which means less red tape and often better terms if your credit and income check out.
Who it's for
- Credit score typically 620+
- Down payments as low as 3% for qualified first-time buyers, 5–20% otherwise
- Stronger income and asset documentation than government-backed loans
Why buyers choose conventional
- No upfront mortgage insurance premium like FHA
- PMI drops off once you hit 20% equity
- More flexibility on property type, including investment and second homes
What you'll need
Two years of income history, a current debt-to-income ratio under roughly 45%, and a down payment ready to go. We'll tell you exactly where you stand before you make an offer.
How conventional pricing works
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac, and pricing is driven by a grid: your credit score on one axis, your loan-to-value ratio on the other. Move up a credit tier or put down a few more percentage points and both your rate and your private mortgage insurance premium can improve. That grid is why two buyers with the same purchase price can be quoted noticeably different payments, and why it is worth checking whether you sit just below a threshold before you lock.
Loan amounts up to the annual conforming limit price as standard conventional loans. Above that limit you move into jumbo territory, with tighter reserve and documentation requirements. Self-employed buyers whose tax returns understate their real cash flow often do better on a bank statement loan than on conventional underwriting.
Private mortgage insurance, explained
Put down less than 20 percent and your conventional loan carries PMI. Unlike FHA mortgage insurance, PMI is temporary: it can be removed once you reach roughly 20 percent equity through payments, appreciation, or a combination of both. There is no upfront premium rolled into your balance either, which is one of the main reasons stronger-credit buyers choose conventional over FHA. You can also structure the loan with lender-paid PMI, trading a slightly higher rate for no separate monthly premium. We will price both ways so you can see which costs less over the years you actually plan to keep the loan.
Choosing your term and rate structure
Most conventional buyers take a 30-year fixed rate for the lower payment, but a 15-year term prices below it and cuts total interest dramatically if the payment fits your budget. If you expect to move or refinance within several years, an adjustable rate may price lower still. Our fixed rate and ARM comparison walks through the tradeoff, and you can test any combination on the payment calculator before you request a rate quote.
Frequently asked
What credit score do I need for a conventional loan?+
Most conventional programs look for a credit score of 620 or higher. Stronger scores unlock better rates and lower PMI.
How much down payment for a conventional loan in Delaware?+
As little as 3% for qualified first-time buyers, and typically 5% to 20% otherwise. Putting 20% down eliminates PMI.
How is a conventional loan different from FHA?+
Conventional loans aren't backed by the government, so they require stronger credit and income documentation, but they avoid FHA's upfront and lifetime mortgage insurance.
Can I use a conventional loan for a second home or investment property?+
Yes. Conventional loans offer more flexibility on property type than most government-backed programs, including second homes and investment properties.
Where we lend
Delaware and Pennsylvania are home base. Beyond that, we work with borrowers across the states below. These loans are available throughout our full lending footprint.
- Delaware
- Pennsylvania
- Alaska
- Alabama
- Arkansas
- Colorado
- Connecticut
- District of Columbia
- Florida
- Georgia
- Hawaii
- Iowa
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Maryland
- Maine
- Missouri
- Mississippi
- Montana
- North Carolina
- Nebraska
- New Hampshire
- New Jersey
- New Mexico
- Ohio
- Oklahoma
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- West Virginia
- Wyoming
Contact
Talk to Our Team Directly
No call centers, no runaround. Reach out and get real answers on what you qualify for before you fall in love with a house.
Phone
302-600-3197Email
info@orangemtg.comHours
Mon-Fri 9am-6pm · Sat by appointment
Office
1301 N Harrison St, Suite 104
Wilmington, DE 19806Serving Delaware, Pennsylvania, and 37 more states
Send us a message
We usually reply within one business day.
By submitting, you agree to be contacted about your request. No spam.