Atlantic Bay Mortgage Group® offers Conventional loans to borrowers in Virginia, North Carolina, Georgia, Florida, and beyond, with local Mortgage Bankers who can walk you through your options. Conventional loans are the most widely used home loans in the country, and for buyers with steady income and good-to-strong credit, they often come with the most flexibility and the lowest long-term cost.
A Conventional mortgage is often the right fit for buyers in these situations. Find the one that most sounds like you.
If your credit score is 620 or above and your income is steady and verifiable, a Conventional loan can offer the most competitive combination of rate and long-term cost.
See If You QualifyConventional loans allow mortgage insurance to be removed once you've built enough equity, unlike most FHA loans, which require it for the life of the loan in most cases. Here's how to avoid PMI altogether.
Compare Down Payment OptionsBoth have flexible qualification paths, but they differ in credit requirements, mortgage insurance, and long-term cost. We'll help you compare side by side.
Compare Conventional vs. FHAIf your loan amount fits within your county's conforming loan limit, a Conventional loan is likely your most cost-effective option. If it doesn't, a jumbo loan may be the better fit.
Check Conforming Loan LimitsIf you currently have an FHA loan or are paying mortgage insurance, refinancing into a Conventional loan may let you drop it once you've built sufficient equity.
Explore Refinancing OptionsA Conventional loan is a mortgage that isn't insured or guaranteed by a government agency, unlike FHA, VA, or USDA loans. Instead, most Conventional mortgages are underwritten to guidelines set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that purchase and standardize most Conventional loans in the U.S.
Because they aren't government-backed, Conventional loans carry stricter credit requirements than FHA loans, but they reward stronger credit profiles with more flexible terms and the chance to eliminate mortgage insurance over time. They're used for primary residences, second homes, and investment properties, and can finance both purchases and refinances.
Choosing a term? Compare a 15-year mortgage vs. 30-year mortgage.
Want to know what it takes to qualify for a Conventional mortgage? Lenders weigh a combination of factors.
No single factor makes or breaks an application. A larger down payment or lower DTI can help offset a lighter credit profile, and vice versa.
Both are widely used loan options, but they serve different credit and financial profiles.
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
Best For | Buyers with a credit score of 620+ and stable income | Buyers with limited credit history or lower credit scores |
Minimum Credit Score | Typically 620 | As low as 580 |
Minimum Down Payment | 3% | 3.5% |
Mortgage Insurance | Required with less than 20% down, but can be removed after reaching 20% equity | Required in most cases for the life of the loan |
Long-Term Cost | Can become more affordable over time once mortgage insurance is removed | May cost more over the life of the loan because mortgage insurance typically remains in place |
Key Advantage | Lower long-term monthly payment potential | Easier qualification for borrowers with lower credit scores or limited credit history |
In short: FHA tends to be more forgiving on credit; Conventional tends to be less expensive over time for buyers who qualify. But comparing your real numbers side by side is the best way to know which one will save you more in the long run.
Ready to talk through your Conventional loan options? Our local Mortgage Bankers can walk you through what fits your situation. There’s no pressure and no commitment.
A Conventional loan is a mortgage not insured or guaranteed by a government agency. Most Conventional mortgages follow underwriting guidelines set by Fannie Mae and Freddie Mac and are used for primary residences, second homes, and investment properties.
Most lenders look for a credit score of 620 or higher, a down payment starting around 3–5%, a debt-to-income ratio at or below 45–50%, and stable, verifiable income, considered together rather than in isolation.
Conventional loans generally require stronger credit but let you remove mortgage insurance once you build 20% equity. FHA loans accept lower credit scores and smaller down payments, but mortgage insurance usually lasts for the life of the loan.
Conforming loan limits are the maximum loan amounts Fannie Mae and Freddie Mac will purchase. For 2026, the baseline limit is $832,750 for a one-unit property in most counties, with higher limits in designated high-cost areas. Loans above the limit for your county require jumbo financing instead.
Down payments can start as low as 3% for qualifying first-time buyers, though 5–20% is common. A down payment under 20% requires private mortgage insurance until you build sufficient equity.
Yes. Once your loan balance reaches 78–80% of your home's original value, you can typically request PMI removal, unlike most FHA loans, which keep mortgage insurance for the life of the loan.
It depends on your credit profile. Conventional loans tend to cost less over time for buyers with good-to-strong credit, while FHA loans can be more accessible for buyers with lower credit scores or limited credit history.
Most Conventional purchases close in 30 to 45 days. Staying organized and responsive throughout underwriting keeps things moving smoothly.
Yes. Conventional loans can finance primary residences, second homes, and investment properties, though down payment and reserve requirements are typically higher for non-primary properties.
Atlantic Bay is always here to help you take the next step toward your Conventional loan. See if you qualify by completing our quick online form or connect with a local Mortgage Banker who can review your scenario, answer your questions, and help you find the perfect loan for you.
Disclosure: Information is for educational purposes only and should not be relied upon by you. Discussions regarding any financial information provided are not intended as individual recommendations and do not reflect the views or advice of Atlantic Bay Mortgage Group, L.L.C. The views expressed are subject to change at any time in response to changing circumstances in the market. Other loan program restrictions and eligibility requirements may apply. For refinances, the total finance charges may be higher over the life of the loan. Atlantic Bay Mortgage Group, L.L.C. disclaims any obligation to publicly update or revise any views expressed or information given. Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend. Atlantic Bay Mortgage Group, L.L.C. NMLS #72043 (nmlsconsumeraccess.org) is an Equal Housing Lender. Located at 600 Lynnhaven Parkway Suite 100 Virginia Beach, VA 23452.
