Conventional is the loan every other program gets measured against — a low down payment for first-time buyers, mortgage insurance that actually cancels, and pricing that rewards the score you worked for. As a wholesale broker, I shop your loan across dozens of lenders so that reward shows up in the rate, not in a bank's margin.
Get My Conventional Quote → Run My NumbersFHA, VA, and the rest exist because conventional has requirements. But when you meet them, conventional usually gives the most back — lower long-term cost, more property types, and an exit ramp from mortgage insurance built right into federal law.
Fannie and Freddie both back high-LTV financing for qualifying first-time buyers — and "first-time" just means no home owned in the last three years. Everyone else starts one tier up.
Private mortgage insurance ends automatically when your balance is scheduled to reach 78% of original value and can be cancelled at 80% by request — no refinance required. Federal law, not lender mercy.
FHA adds an upfront mortgage insurance premium to your loan balance. Conventional doesn't have one, so your balance starts lower.
Conventional pricing improves in credit tiers. The score you spent years building translates directly into a lower rate and cheaper PMI — we price it across dozens of lenders to prove it.
Seller-paid closing costs scale with your down payment — the more you put down, the more the seller is allowed to contribute, up to nine percent at the top tier. Room we use when we structure your offer.
Second homes, investment properties, condos, owner-occupied duplexes — conventional goes where FHA isn't allowed to, and the down payment is lower than most people assume.
Your credit is roughly 680 or better. That's where conventional pricing starts beating FHA for most buyers — and by 740+ it's usually not close.
You have a real down payment saved — or less than that, if you qualify as a first-time buyer. Either way, you skip FHA's upfront premium entirely.
You want mortgage insurance with an expiration date. You can ask to cancel PMI once your balance reaches 80% of the home’s original value, and it ends automatically when it’s scheduled to reach 78%, as long as you’re current. FHA's version, with minimum down, only leaves when you refinance.
You're buying a second home or rental. FHA is owner-occupied only. Conventional finances up-north places and investment properties — and if the deal is rental-first, we'll run a DSCR loan beside it.
The house is under $832,750. That's the 2026 conforming ceiling for every Michigan county — which covers nearly everything in the state.
You're moving up and selling later. Conventional plays cleaner with contingencies, departure-home rental income, and bridge strategies when timing gets tight.
You're self-employed with two years of returns. Conventional underwriting adds back depreciation, home-office and other non-cash deductions, so plenty of business owners qualify here before they ever need a bank statement loan. My self-employed guide walks through it.
Credit still rebuilding, or a very small down payment without first-time status? FHA was built for exactly that — and it's a fine place to start, not a consolation prize. Eligible for VA? Your VA benefit likely beats both.
Put down less than a fifth of the price on a conventional loan and you'll pay private mortgage insurance. Nobody loves it. But conventional PMI deserves a fair hearing, because it's a different animal from FHA's version.
First, the price isn't fixed — it's scored. Strong credit can mean surprisingly cheap PMI; we also shop the PMI itself, because wholesale lenders use competing insurers.
Second, it ends. By federal law, PMI ends automatically once your balance is scheduled to reach 78% of the original value, and you can request cancellation at 80%, sooner if you pay extra principal to get there. Many loan owners also allow earlier removal based on a new valuation, usually with an appraisal you pay for. Either way, no refinance required.
And if you're close to the threshold where PMI disappears, we'll run the math on getting there versus keeping cash in reserve. Sometimes paying PMI for a year beats emptying your savings account. That's a numbers conversation, and you don't have it alone — the Cash to Close tool is where we start.
Conventional usually wins when your credit is roughly 680+ and you have a real down payment saved — no upfront premium, and PMI that comes off without a refinance.
FHA usually wins when your score is in the 580–670 range, your down payment is at FHA’s minimum, or your DTI runs high — FHA pricing doesn't climb with lower scores the way conventional pricing does.
You shouldn't have to guess. I run every buyer both ways and show you the side-by-side. You pick with real numbers in front of you.
A quote is free, there's no obligation, and a soft pull is all it takes to price your real scenario across dozens of lenders. Twenty years in, I can tell you no two files look alike — we'll figure it out.
Get My Conventional Quote → Call / Text (810) 819-8686Every other calculator asks you for the home price. This one gives you one — from your income, your monthly debts and what you've saved — using your own township's real millage instead of a national average. No email, no credit pull.
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