Buy a Home
- Competitive interest rates with good credit and finances
- Down payments as low as 5%
- No mortgage insurance with a 20% down payment
Lower Your Payment
- Lower your rate and payment
- Competitive rates with good credit and finances
- No mortgage insurance with 20% home equity
Get Cash from Equity
- Get cash from your home’s value
- Pay for major expenses and debt consolidation
- No mortgage insurance with 20% home equity

Down Payments as Low as 5% for Homebuyers
You aren’t required to make a 20% down payment to buy a home with a Conventional loan. You may be able to make a down payment as low as 5%. However, a 20% down payment can help you avoid paying for Private Mortgage Insurance (PMI). Begin your homebuying journey today!
How Much Home Can You Afford?
When you’re thinking about buying a home, figuring out how much you can afford is a great first step. Use our home affordability calculator to get an estimate!
All fields are required.
Get your calculator results delivered to your email
Let us help you save more on your mortgage each month by lowering your interest rate. Fill out the form below and one of our licensed Loan Advisors will contact you.
All fields are required. Reset Calculator Results
A loan advisor from Freedom Mortgage will reach out to you to review your results and discuss the request for a cash out refinance on your home’s equity.
Based on the values you provided, you may be able to afford a home worth up to
Take the Next Step
- Get prequalified before you start shopping for your next home.
- Learn more about how much to spend on a home.
Frequently Asked Questions About Conventional Loans
-
Conventional loans are mortgages offered by private lenders without backing from a government agency. You can get competitive interest rates and favorable terms from these loans when you have good credit and finances. You can buy and refinance primary homes, vacation homes, rental homes, and investment properties with Conventional loans.
-
Conventional loans often have lower mortgage insurance costs over the life of the loan compared to FHA loans.
FHA loans have an upfront mortgage insurance premium (MIP) you must pay at closing or finance into your loan amount. Conventional loans do not have an upfront mortgage insurance payment.
FHA loans also have monthly mortgage insurance premiums you need to pay over the life of the loan. You cannot remove FHA monthly mortgage insurance premiums from your loan in most cases, regardless of the amount of home equity you have.
When you buy a home with a Conventional loan, you can avoid paying for Private Mortgage Insurance (PMI) if you make a down payment of at least 20%. When you make a smaller down payment, you may be able to stop paying for PMI when the value of your home’s equity reaches 20%.
You can buy and refinance primary homes, vacation homes, rental homes, and investment properties with Conventional loans. You can have more than one Conventional loan at a time too.
With FHA loans, you are usually limited to financing just a primary home and you can only have one FHA loan at a time.
Conventional loans generally have higher minimum down payments and credit scores than FHA loans. This can make it harder to qualify for a Conventional loan compared to an FHA loan.
-
- Submit an application. You will need to complete an application and meet our credit, income, and financial requirements to get your loan approved. Learn more about applying for a mortgage .
- Meet a minimum credit score. At Freedom Mortgage, you can often qualify for a Conventional loan with a minimum credit score of 620. Higher credit scores might help us offer you a better interest rate or more favorable terms.
- Pay a minimum down payment. You typically need to make a 5% down payment to buy a home with a Conventional loan. If you make a down payment of 20% or more, you won't have to pay for Private Mortgage Insurance.
- Pay Private Mortgage Insurance (PMI). If you have a Conventional loan and make a down payment that's less than 20%, you will have to pay private mortgage insurance (PMI). Once the equity in your home reaches 20%, you can request that your PMI be removed.
- Be aware of loan limits. Conventional loans offered by Freedom Mortgage are often called “conforming loans” because they have limits on the amount of money you can borrow. In 2024, you can borrow up to $766,550 with a Conventional conforming loan in most of the United States.
- Pay closing costs. Conventional loans come with closing costs that can include appraisal fees, property insurance, mortgage discount points, and property taxes. Closing costs typically cost between 2% and 5% of the price of the home. Learn more about closing costs.
-
The rate we may be able to offer is personal to you. Your interest rate is affected by the type of loan you want, your credit score, your income and finances, as well as the current mortgage market environment.
Freedom Mortgage may be able to offer you a rate that is lower—or higher—than the rate you see advertised by other lenders. Ask us today what Conventional loan rate we can offer you. Call a Loan Advisor at 877-220-5533.
Compare Different Types of Home Loans
Loan | Eligibility | Minimum Credit Score | Minimum Down Payment | Upfront Fees/ Insurance | Monthly Fees/ Insurance | Streamline Refinancing |
---|---|---|---|---|---|---|
Conventional | All homebuyers and owners | Often 620 | Often 5% | No | No with at least 20% equity | No |
FHA | All homebuyers and owners | Often 550 | As low as 3.5% | Yes | Yes | Yes |
VA | Veterans, military personnel, surviving spouses only | Often 550 | Often 0% | Yes | No | Yes |
USDA | Rural and some suburban homebuyers and owners only | Often 620 | Often 0% | Yes | Yes | Yes |