Conventional Loans
The most popular mortgage in America — available with no broker markup, a dedicated loan officer, and a close in under 30 days.
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What Is a Conventional Loan?
A conventional loan is a home mortgage that isn’t backed or insured by the federal government. That’s the simple definition — and it’s actually one of the things that makes conventional loans appealing. Because there’s no government involvement, lenders have more flexibility in what they offer, and borrowers with solid credit and a larger down payment often get the most competitive rates available.
Most conventional loans are also conforming loans, meaning they meet the guidelines set by Fannie Mae and Freddie Mac. This keeps them predictable, widely available, and eligible for the full range of mortgage products: 30-year fixed, 15-year fixed. Unlike FHA loans, conventional loans can be used for primary residences, second homes, and investment properties.
One of the biggest advantages: private mortgage insurance (PMI) is only required if you put less than 20% down — and unlike the mortgage insurance on FHA loans, PMI on a conventional loan can be cancelled once you reach 20% equity. That can mean meaningful savings over the life of the loan.
Not sure if conventional is right for you? Compare conventional vs. FHA below, or see our FHA Loans page for a full breakdown.
Conventional loan options we offer
- 30-year fixed rate
- 15-year fixed rate
- Adjustable rate (5/1, 7/1, 10/1 ARM)
- High-balance conforming loans
- Second home & vacation property
- 1–4 unit investment property
- Co-op & condo financing
What You Need to Qualify for a Conventional Loan
Minimum 620 for most conventional loans. Higher scores (720+) typically unlock the best rates and terms. Powerhouse Solutions works with borrowers across the range — and if your score needs work, we’ll tell you exactly what to do.
As low as 3% for a primary residence. Second homes require 10% or more. Investment properties require between 15-25% depending on property type. The more you put down, the better your rate and the lower your monthly payment.
Most lenders prefer a DTI at or below 50%. This is the share of your gross monthly income going toward all debt payments, including the new mortgage. If your number is higher, it doesn’t automatically disqualify you — talk to us first.
Two years of stable income history is standard. W-2 employees, self-employed borrowers, and those with complex income structures are all welcome. We’ve closed conventional loans for a wide range of income profiles that other lenders found too complicated.
Conventional loans work for single-family homes, condos, co-ops, multi-family properties (up to 4 units), and investment properties — making them one of the most versatile mortgage products for buyers.
Required only if your down payment is under 20%. Unlike FHA mortgage insurance, conventional PMI can be removed once you hit 20% equity in the home.
Why Borrowers Choose Powerhouse Solutions for Conventional Loans
Powerhouse Solutions is a direct lender, not a broker. That means your rate doesn’t pass through a middleman before it reaches you. What we quote is what you get — with full control of the process from application to closing.
Because we control the process in-house — underwriting, processing, and closing — we’re not waiting on a bank’s committee or a third-party queue. Our conventional loan timeline is under 30 days. Most banks can’t say that.
Self-employed, commission-based, multiple income streams, or a tax return that doesn’t tell the whole story — we understand how borrowers actually earn money. Our loan officers know how to structure conventional loans for borrowers other lenders turn away.
No handoffs, no call centers, no starting over with someone new. Your dedicated Powerhouse Solutions loan officer is with you from your first rate question through the day you get your keys.
Conventional vs. FHA — Which Loan Is Right for You?
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Conventional
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FHA
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Min. Credit Score
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620
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500–580 (3.5% down requires 580)
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Min. Down Payment
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Between 3 - 5% (primary residence)
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3.5% (with 580+ score)
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Mortgage Insurance
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PMI only if < 20% down; can be cancelled
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Required for life of loan in most cases
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Property Types
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Primary, 2nd home, investment
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Primary residence only
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Loan Flexibility
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Conforming + non-conforming options
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Government-set guidelines
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Best For
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Strong credit, building equity faster
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Lower credit, smaller down payment
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Not sure which fits your situation? We’ll tell you straight — no obligation, no credit pull.
Ready to See What Conventional Rate You Qualify For?
How It Works
From Application to Closing
Tell us about your situation in under 2 minutes. No commitment, no credit pull.
Your dedicated loan officer reviews your details and issues a pre-approval letter, often the same day.
PHS manages the entire process from underwriting to title. You focus on finding your home.
As a direct lender, we control the timeline. No bank delays, no middlemen.
What Our Conventional Loan Borrowers Say
Buyers and homeowners who chose PHS over their bank.