Loan Programs

Conventional Loans, Made Simple

Explore conventional financing with flexible terms and options designed around your financial picture.

What Is a Conventional Loan?

A traditional mortgage with more flexibility.

A conventional loan is a home loan that is not insured or guaranteed by a government agency. For qualified borrowers, it can offer flexible terms, competitive financing options, and more freedom in how a property is financed.

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Why Buyers Choose Conventional Financing

Four reasons it is the program most buyers end up comparing every other one against.

Put as little as 3% down. Some conventional programs allow qualified buyers to purchase with as little as 3% down — making 20% far from the only path to homeownership.
Finance more than your primary home. Conventional loans can be used for primary residences, second homes, and investment properties, making them useful across different stages of homeownership.
Avoid or eventually remove mortgage insurance. Putting 20% down can typically eliminate private mortgage insurance (PMI), and buyers who start with less may be able to remove it later as they build equity.
Choose terms that fit your financial plan. Different loan terms, down payments, and financing structures give borrowers more ways to balance their monthly payment, upfront costs, and long-term goals.

More Than a Loan Program

Choosing a program is one decision inside a bigger one.

The right mortgage starts with the right strategy. A conventional loan may be a great fit — but the loan program is only one part of the decision. Your credit, down payment, property, monthly payment, timeline, and long-term goals all affect which option makes the most sense.

Alliance helps you understand the whole picture. With more than 20 years of mortgage experience, Alliance pairs market knowledge with a dedicated loan officer who helps you compare your options, understand the numbers, and choose a path with confidence.

Is a Conventional Loan a Good Fit?

Four things conventional financing does that the government-backed programs do not.

No upfront mortgage insurance fee. A conventional loan charges no upfront government mortgage insurance premium, where an FHA loan adds one to the balance at closing.
PMI can be cancelled. Once equity clears 20%, private mortgage insurance comes off and that money stops going out the door — unlike programs where it stays for the life of the loan.
Primary home, second home, or investment. Conventional financing covers all three, while FHA, VA and USDA loans are built around a home the borrower actually lives in.
Readiness is rewarded. The best terms typically go to the strongest credit profiles, so the work done before an application shows up in what is offered after it.

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Compare the Paths With Alliance

One conversation, and every program you qualify for read side by side.

The best loan isn't determined by the program name — it's determined by the numbers. Your Alliance loan officer can compare conventional, FHA, VA, USDA and other available programs using the factors that actually affect you: cash needed at closing, monthly payment, mortgage insurance and long-term cost.

You see the tradeoffs before you choose the path. Instead of simply telling you what you qualify for, Alliance helps you understand why one option may work better than another — so you can make an informed decision about your home and your finances.

Getting conventional-ready

A handful of numbers determine whether — and how well — someone qualifies. Worth knowing these before the first conversation, not during it.

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Credit score. 620 is the general baseline most lenders work from, though it is not a hard government floor the way FHA's is — some lenders weigh the full credit picture rather than one cutoff. Scores of 740 and above are where pricing and PMI cost meaningfully improve.
Down payment. As low as 3% for qualifying first-time or moderate-income buyers; 5% is the common baseline for everyone else. Second homes and investment properties typically ask for more — often 10% and 15–25% respectively — because the lender takes on more risk when the home is not the borrower's primary residence.
Debt-to-income ratio. Under 36% is considered strong; many lenders extend to 43–50% with compensating factors like a larger down payment or healthy reserves.
Loan amount vs. the conforming limit. For 2026, the baseline conforming loan limit across Salt Lake, Utah, and Davis counties is $832,750 for a single-family home, a figure the FHFA sets annually. Anything above it moves into jumbo territory, a different program entirely.
Property type. Conventional is the most flexible program on this front — primary residence, second home, or investment property are all fair game, unlike FHA, VA, or USDA, which are built around owner-occupancy.

Conventional Loan FAQs

The questions buyers ask most before deciding whether conventional is their program.

Do I really need 20% down for a conventional loan?

No — that's the single biggest myth in mortgage lending. Conventional loans start at 3% down for qualifying buyers, and 5% is a common baseline otherwise. 20% down simply means PMI isn't required at all; it isn't a minimum to qualify.

How do I get rid of PMI once I have it?

Under federal law, a borrower can request cancellation in writing once the loan balance reaches 80% of the home's original value, and the servicer must automatically remove it at 78% if payments are current. Extra principal payments or a rise in home value can also get there faster.

Can I use a conventional loan for a rental property?

Yes — this is one of the clearest advantages over FHA, VA, or USDA, which are built around the borrower living in the home. Investment properties typically ask for a larger down payment and stronger reserves.

What's the actual difference between conventional and FHA?

Conventional generally asks for stronger credit and a slightly higher down payment, but its mortgage insurance goes away once enough equity builds. FHA opens the door with a lower score and less cash upfront, but its mortgage insurance usually lasts the life of the loan. Neither is “better” — it depends on the borrower’s credit and cash position today.

What's the loan limit for a conventional loan in Salt Lake County?

For 2026, the FHFA's baseline conforming limit is $832,750 for a single-family home across Salt Lake, Utah, and Davis counties. Loans above that move into jumbo territory, which comes with its own requirements.