Conventional Loans
At Capital City Home Loans, we offer a wide range of mortgage options to meet the needs of today’s homebuyers — and conventional loans remain one of the most popular. Whether you’re purchasing your first home, upgrading to a larger property, or refinancing your current mortgage, a conventional loan can offer flexibility, competitive rates, and streamlined approval processes.
What Is a Conventional Loan?
A conventional loan is a mortgage that is not insured or guaranteed by the federal government. Unlike FHA, VA, or USDA loans, conventional mortgages are backed by private lenders and often adhere to the standards set by Fannie Mae and Freddie Mac, two government-sponsored enterprises that buy and sell mortgages in the secondary market.
Conventional loans are available in two categories:
- Conforming Loans:
These follow the loan limits and underwriting standards set by Fannie Mae and Freddie Mac. For 2025, the conforming loan limit for a single-family home is $806,500 in most U.S. counties. - Non-Conforming Loans:
These exceed the conforming loan limits and may have additional requirements (these include jumbo loans, which are covered in a separate program).
Key Benefits of Conventional Mortgages
Conventional loans are a popular choice among borrowers for several important reasons:
- Low Interest Rates:
Competitive rates for qualified borrowers with strong credit - Flexible Terms:
Choose from fixed-rate or adjustable-rate options and a variety of loan terms - Low Down Payment Options:
Some programs allow down payments as low as 3% - No Upfront Mortgage Insurance Premium:
Unlike FHA loans, there is no upfront fee - Removable Private Mortgage Insurance (PMI):
Once your equity reaches 20%, PMI can typically be removed
Who Should Consider a Conventional Loan?
Conventional loans are best suited for borrowers with good credit, stable income, and the ability to make a reasonable down payment. These loans are widely used for:
- First-time homebuyers
- Move-up buyers
- Refinancing existing mortgages
- Second homes and investment properties
To qualify for a conventional loan through Capital City Home Loans, borrowers typically need:
- A credit score of at least 620, though higher scores receive better rates
- A debt-to-income (DTI) ratio below 45%
- Proof of steady employment and income
- A minimum 3% to 5% down payment, depending on the loan program
Our mortgage professionals work closely with you to determine eligibility, evaluate all available options, and secure the best rate and terms for your needs.
