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Conventional Loan

The most popular home loan in America. Conventional loans offer flexible down payments and competitive rates — a straightforward path to buying or refinancing for borrowers with solid credit.

From 3% downNo upfront mortgage insurance10–30 year terms
Overview

What is a Conventional Loan?

A Conventional loan is a mortgage that isn't insured or guaranteed by the federal government. It's the most common home loan and is ideal for buyers with good credit — from first-time buyers to investors — offering fewer restrictions and often faster processing than government-backed loans.

It's the loan we close most often for Emerald Coast families buying a primary home — from Panama City Beach to Destin and the 30A communities.

Benefits

Why choose a Conventional Loan?

As Little as 3% Down

Qualified buyers can get in with a down payment as low as 3% of the purchase price.

Competitive Rates

Strong credit unlocks some of the most competitive interest rates available.

Buy, Build, or Refinance

Use a Conventional loan to purchase, build from the ground up, or refinance the home you own.

No PMI at 20% Down

Put 20% down to skip private mortgage insurance — and PMI cancels automatically as you build equity.

How It Works

How to qualify

Three simple steps from “just looking” to keys in hand.

1

Check your finances

You'll typically need a credit score around 620 or higher, a debt-to-income ratio of 43% or less, and a down payment between 3% and 20%.

2

Get pre-qualified

A quick pre-qualification shows sellers you're serious and gives you a clear price range to shop in.

3

Gather your documents

Have your ID, income (W-2s or pay stubs), and asset statements ready to finalize your application.

FAQ

Frequently asked questions

How is a Conventional loan different from FHA and VA loans?
Conventional loans aren't government-backed, so they have stricter credit requirements but no upfront mortgage-insurance fee, and the PMI cancels at 20% equity. FHA loans are insured by the FHA and are more forgiving on credit; VA loans are guaranteed by the VA for eligible service members with no down payment.
What credit score do I need?
Most Conventional loans require a minimum score around 620, though a higher score generally earns you a better interest rate.
Do I have to pay PMI?
Only if you put down less than 20%. Private mortgage insurance cancels once you reach 20% equity, and there's no upfront mortgage-insurance fee like FHA loans have.
What are conforming loan limits?
Conventional loans that fall under the FHFA's annual limit (about $806,500 for a single-family home in most areas in 2025) are 'conforming.' Higher amounts are financed with a Jumbo loan.
Can I use a Conventional loan for a second home or investment property?
Yes. Conventional loans can finance primary residences, vacation homes, and investment properties, with terms and down payment varying by occupancy.

Ready to get started?

Let’s find out if a Conventional Loan is the right fit for you. It takes just a few minutes — no obligation.

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