Flexible · Removable PMI · Most Popular

Conventional Loans: Flexibility That Grows With You

Conventional loans are the most common type of mortgage in America. With options as low as 3% down for qualified first-time buyers, mortgage insurance you can eventually remove, and financing for primary, second, and investment homes, they're a smart fit for many OKC buyers.

Get My Conventional Quote → 📞 (405) 390-7072

3% down for qualified buyers*
PMI removable
Primary, second & investment homes

Compare Conventional Loan Options

Quick, no-obligation request. Earnest will follow up personally.

Prefer to talk now? Call or text Earnest at (405) 390-7072

🏦

200+ LendersShopped for your loan

🛡️

NMLS LicensedNMLS# 1660690

📍

Edmond, OKLocal OKC Metro expert

⭐

A+ ServiceResponsive & personal

Overview

What Is a Conventional Loan?

A conventional loan is a mortgage that isn't insured or guaranteed by a government agency. Most conventional loans are "conforming," meaning they follow guidelines set by Fannie Mae and Freddie Mac and fall within the annual conforming loan limit. Loans above that limit are called "jumbo" loans.

Qualified first-time buyers may put as little as 3% down through programs like Fannie Mae HomeReady® and Freddie Mac Home Possible®. With less than 20% down, private mortgage insurance (PMI) is required — but unlike FHA, PMI can be removed once you reach 20% equity (by request) and is automatically canceled at 22% equity based on the original value, if your payments are current.

Conventional loans are also the go-to option for second homes and investment properties, and they offer fixed-rate terms from 10 to 30 years as well as adjustable-rate (ARM) options.

*3% down programs have eligibility requirements, which may include income limits and homebuyer education.

Key Benefits

Why Choose a Conventional Loan?

💵

Low Down Payment Options

As little as 3% down for qualified first-time buyers; 5% for many others.

✂️

Removable PMI

Drop mortgage insurance once you reach 20% equity — or avoid it with 20% down.

🏘️

All Occupancy Types

Finance a primary residence, second home, or investment property.

📅

Flexible Terms

10, 15, 20, 25 & 30-year fixed, plus adjustable-rate options.

💎

Jumbo Available

Financing above the conforming limit for higher-priced homes.

🎯

Strong Credit Rewards

Borrowers with strong credit and larger down payments may see attractive pricing.

At a Glance

Conventional Loan Guidelines at a Glance

General guidelines only — requirements vary by lender and individual situation.

Feature	Details
Minimum Down Payment	3% (qualified first-time buyers) · 5% standard · 10% second homes · 15%+ investment
Minimum Credit Score	Typically 620
Mortgage Insurance	PMI required under 20% down; removable at 20% equity
Loan Limits	Conforming limit set annually by FHFA; jumbo loans above the limit
Debt-to-Income	Generally up to 45%, up to 50% with strong compensating factors
Occupancy	Primary, second home, or investment
Seller Concessions	3%–9% depending on down payment and occupancy
Refinance Options	Rate/Term and Cash-Out (up to 80% LTV on primary residence)

Program guidelines, limits, and fees are subject to change. All loans subject to credit approval. Terms and conditions apply.

The Process

How to Get a Conventional Loan

📝

Apply in Minutes

Share your goals, income, and down payment plans in a quick online form.

🔍

We Compare Pricing

Earnest compares conventional pricing and PMI options across many lenders.

🔑

Lock & Close

Choose your best option, lock when you're ready, and close on schedule.

★★★★★

"We had about 10% saved and assumed we'd be stuck with mortgage insurance forever. Earnest showed us how a conventional loan's PMI would drop off as we built equity, and compared quotes from several lenders. We closed on our Norman home and the process was incredibly smooth."

Ryan & Megan FosterMove-up buyers · Conventional purchase in Norman, OK

Client testimonials reflect individual experiences and are not a guarantee of future results, rates, or approval.

Get Your Conventional Loan Quote

Tell us about your purchase or refinance and Earnest will compare conventional options across 200+ lenders.

Prefer to talk now? Call or text Earnest at (405) 390-7072

🔒 Your information is secure and never sold. Checking your options will not affect your credit score.

Answers

Conventional Loan FAQs

What's the minimum down payment for a conventional loan?

Qualified first-time buyers may put as little as 3% down through programs like HomeReady® and Home Possible®. Other primary residence buyers typically need at least 5%. Second homes generally require 10% and investment properties 15–25%.

How do I get rid of PMI on a conventional loan?

You can request PMI cancellation once your loan balance reaches 80% of the home's original value, and it's automatically terminated at 78%, as long as your payments are current. A new appraisal showing increased value may also help you remove PMI sooner, subject to servicer rules.

Is a conventional loan better than an FHA loan?

It depends. Borrowers with good credit (often 680+) and at least 5% down may find conventional more affordable overall because PMI can be removed. Borrowers with lower scores may find FHA more cost-effective. Earnest will compare both for you.

What is the conforming loan limit?

The conforming loan limit is set annually by the Federal Housing Finance Agency (FHFA). Loans above that amount in most Oklahoma counties are considered jumbo loans and may have different requirements.

Can I use gift funds for a conventional loan?

Yes. Gift funds from eligible donors, such as family members, can be used toward the down payment and closing costs on a primary residence or second home, with proper documentation.

Have a quick question about your options?

Earnest answers calls and texts personally — no call centers.

📞 Call (405) 390-7072 Get Pre-Approved