Conventional Loans

Flexible Mortgage Solutions for Today's Homebuyers

Conventional loans are one of the most versatile mortgage options available, offering flexible financing for homebuyers and homeowners with a wide range of financial goals. Whether you’re purchasing your first home, upgrading to a larger property, buying a second home, or refinancing your existing mortgage, a conventional loan can provide competitive interest rates, flexible loan terms, and financing options tailored to your needs. Jerry Ownby is committed to helping every borrower find the right conventional mortgage solution while making the lending process simple, transparent, and stress-free.

What Is a Conventional Loan?

A conventional loan is a mortgage that isn’t insured or guaranteed by a government agency such as the FHA or VA. Most conventional loans are “conforming,” meaning they follow the guidelines set by Fannie Mae and Freddie Mac, including annual loan limits that vary by county. Because they’re widely used and widely accepted, conventional loans offer a strong combination of flexibility and competitive pricing for qualified borrowers.

Choose the Loan Term That Fits Your Life

One of the biggest decisions with a conventional loan is the term. Each option comes with trade-offs:

  • 30-year fixed: Lower monthly payments and the most budget flexibility, but more total interest over time
  • 20-year fixed: A middle ground with moderate payments and meaningful interest savings
  • 15-year fixed: Higher monthly payments, but you build equity faster and pay far less interest overall
  • Adjustable-rate (ARM): A lower initial rate for a set period, which may suit buyers who plan to sell or refinance before it adjusts

Jerry will show you side-by-side payment comparisons so you can see how each choice affects your monthly budget and long-term cost.

Down Payment Options

Many people assume conventional loans always require 20% down, but that isn’t the case. Depending on the program and your qualifications:

  • Lower down payment programs may be available for eligible buyers, including some first-time buyers
  • Standard down payments are common for many borrowers
  • 20% or more down typically allows you to avoid private mortgage insurance (PMI)

The right amount depends on your savings, your goals, and how you want to balance upfront costs against monthly payments.

Understanding PMI

If your down payment is under 20%, PMI is generally required. It protects the lender, not the borrower, and the cost depends on factors like your credit score, down payment, and loan type. A key advantage of conventional loans is that PMI can typically be removed once you’ve built enough equity, which can lower your payment down the road. Jerry will explain how PMI applies to your situation and when you may be able to eliminate it.

How Your Credit Score Affects Your Rate

Credit plays a major role in conventional loan pricing. Generally, stronger credit can lead to lower interest rates and lower PMI costs, while lower scores may mean higher costs or fewer options. If your credit needs work, Jerry can help you understand what steps may improve your position. If conventional financing isn’t the best fit right now, FHA loans may offer a more flexible path.

Property Types You Can Finance

Conventional loans are versatile. Depending on guidelines, you can use them for:

  • Primary residences
  • Second homes and vacation properties
  • Investment properties, which often come with different down payment and credit requirements

Investors who want to qualify based on rental income rather than personal income can also explore DSCR loans.

Conventional Refinance Options

Already a homeowner? A conventional refinance can help you:

  • Lower your interest rate or monthly payment
  • Shorten your term to pay off your home sooner
  • Remove PMI if your equity has grown
  • Switch from an adjustable to a fixed rate
  • Access home equity through a cash-out refinance

If you’d rather keep your current first mortgage and still tap equity, a HELOC may be worth considering.

When Is a Conventional Loan Not the Right Fit?

Conventional loans are popular, but not always ideal. If your purchase exceeds county limits, a jumbo loan may be needed. Eligible veterans and service members may get stronger benefits through VA loans. Jerry will help you compare programs so you land on the one that truly serves you best.

Serving Borrowers Across 14 States

Jerry Ownby proudly serves borrowers throughout Arizona, Alaska, California, Colorado, Florida, Georgia, Maryland, Montana, Ohio, Texas, Utah, Washington, South Carolina, and West Virginia, providing personalized guidance wherever you plan to buy or refinance.

The Conventional Loan Process, Step by Step

  1. Consultation: Discuss your goals, finances, and timeline with Jerry.
  2. Pre-approval: Learn your buying power before you shop.
  3. Home search or refinance review: Move forward with a clear plan.
  4. Documentation: Provide income, asset, and credit information.
  5. Appraisal and underwriting: The property and your file are reviewed.
  6. Closing: Sign your documents and finish with confidence.

Use the loan calculator to estimate payments and check today’s rates as you plan.

Support That Continues After Closing

Jerry’s commitment doesn’t end at the closing table. Whether you’re planning a future refinance, buying another property, or exploring new financing options, he’s here to provide trusted guidance whenever your needs change.

Ready to Explore Conventional Financing?

Call Jerry Ownby at 480-980-0900 or visit 459 N Gilbert Rd, Suite B100, Gilbert, AZ 85234 to discuss your options and take the next step toward your home.