Conventional Home Loans in Iowa | As Little as 3% Down

Conventional loans aren't backed by a government agency. Most follow guidelines set by Fannie Mae and Freddie Mac. For buyers with solid credit, they're often the lowest-cost option over the life of the loan.

Conventional loan highlights

As little as 3% down for qualified buyers
Removable mortgage insurance. PMI can come off as you build equity, and you avoid it entirely with 20% down.
Pricing that rewards strong credit
Flexible property types: primary homes, second homes and investment properties
Reduced mortgage insurance options for some moderate-income buyers

Who it fits best

Buyers with good to excellent credit
Buyers who want to drop mortgage insurance down the road
Move-up buyers using equity from a current home
Second home and investment property buyers

Credit scoring is changing

Lenders can now use VantageScore 4.0 as well as classic FICO for conventional loans sold to Fannie Mae and Freddie Mac. Here's what that means for you.

Getting started

I'll compare conventional against your other options and show you the real monthly payment and cash to close for each. Reach out or apply online.

Frequently asked questions

How much do I need to put down on a conventional loan?

As little as 3% for qualified buyers, including many first-time buyers. Putting 20% down avoids private mortgage insurance entirely.

When does PMI go away on a conventional loan?

You can generally request removal once your loan balance reaches 80% of the home's original value, and it's automatically removed at 78% if you're current on payments. Equity from appreciation may let you remove it sooner with a new appraisal, subject to lender rules.

Can I use a conventional loan for a second home or investment property?

Yes. Conventional loans can finance primary residences, second homes and investment properties, with different down payment and credit requirements for each.