Conventional Home Loans with Competitive Wholesale Pricing
Clear numbers, faster timelines, and options that fit your down payment and goals.
What Is a Conventional Loan?
A conventional mortgage is any home loan that isn't backed by a government agency like the FHA, VA, or USDA. These loans follow guidelines set by Fannie Mae and Freddie Mac—the two government-sponsored enterprises that buy most conventional mortgages from lenders. Because they're not government-insured, conventional loans typically require stronger credit profiles and larger down payments than their government-backed counterparts.
That said, conventional loans offer tremendous flexibility. You can put down as little as 3% on a primary residence (with certain first-time buyer programs) or 5% in most standard scenarios. If you can manage a 20% down payment, you'll avoid private mortgage insurance (PMI) altogether, which can save you hundreds of dollars per month. Conventional loans also tend to have more lenient property standards than FHA loans, making them ideal for condos, investment properties, and homes that might not meet stricter government requirements.
At West Capital Lending, we specialize in finding you the most competitive conventional loan rates available through our wholesale lending relationships. With over 30 years of experience, Dana Peterson and our team know how to structure your loan to minimize costs, maximize approval odds, and close on time—whether you're buying your first home in Florida or refinancing a rental property in Washington.
Who Should Consider a Conventional Loan?
Eligibility Snapshot
Quick overview of conventional loan requirements
Credit & Income
- Minimum Credit Score: 620 (620-679 may require larger down payment)
- Ideal Credit Score: 680+ for best rates and terms
- Income Documentation: W-2s, pay stubs, tax returns (typically 2 years)
- Debt-to-Income Ratio: Generally 43-50% max (varies by lender)
Down Payment & LTV
- Minimum Down Payment: 3% (first-time buyers), 5% (standard)
- PMI Avoidance: 20% down payment eliminates PMI
- Maximum LTV: 97% (primary residence), 90% (second home), 75-80% (investment)
- Occupancy Types: Primary, second home, investment property
Understanding Rates, Fees & Costs
Conventional loan interest rates fluctuate daily based on market conditions, your credit profile, loan-to-value ratio, and property type. Generally, borrowers with credit scores above 740 and 20% down payments receive the most favorable pricing. If you're putting down less than 20%, you'll pay private mortgage insurance (PMI), which typically ranges from 0.3% to 1.5% of the loan amount annually, depending on your credit score and down payment size.
Points vs. Credits: You can often "buy down" your interest rate by paying discount points at closing—each point costs 1% of your loan amount and typically reduces your rate by about 0.25%. Conversely, you can accept a slightly higher rate in exchange for lender credits that cover some or all of your closing costs. We'll help you run the numbers to determine which strategy makes sense for your timeline and cash position.
Lock Periods: Most conventional loans offer rate locks ranging from 15 to 60 days. Longer locks may cost slightly more, but they provide peace of mind if you're buying new construction or expect a delayed closing. We typically recommend a 30-day lock for standard purchases and a 45-day lock for more complex transactions.
Third-Party Fees: Beyond lender fees, you'll pay for appraisal ($500-$800), title insurance, escrow services, recording fees, and prepaid items like property taxes and homeowners insurance. Your Loan Estimate will itemize every cost within three business days of application, and we'll review it line-by-line to ensure transparency and accuracy.
How the Conventional Loan Process Works
Discovery & Pre-Approval
1-3 daysWe'll discuss your goals, review your credit and income, and issue a pre-approval letter that shows sellers you're a serious, qualified buyer. This step includes a soft credit pull and preliminary document review.
Property Search & Offer
VariesArmed with your pre-approval, you'll work with your real estate agent to find the right property. Once you're under contract, we'll order the appraisal and begin full underwriting.
Processing & Conditional Approval
7-14 daysOur processor will collect all required documents, verify employment and assets, and submit your file to underwriting. You'll receive a conditional approval with a list of any outstanding items needed for final clearance.
Clear to Close
2-5 daysOnce all conditions are satisfied and the appraisal is reviewed, underwriting issues a 'clear to close.' We'll coordinate with the title company to schedule your signing appointment.
Signing & Funding
1-2 daysYou'll sign your final loan documents at the title company or with a mobile notary. Funds are wired, and you receive the keys to your new home. Congratulations!
Documents You'll Need
Income & Employment
- • Most recent 2 years W-2s
- • Most recent 30 days pay stubs
- • 2 years personal tax returns (if self-employed)
- • 2 years business tax returns (if applicable)
- • Year-to-date profit & loss statement
Assets & Identity
- • Most recent 2 months bank statements (all pages)
- • Most recent retirement/investment account statements
- • Gift letter (if receiving gift funds)
- • Government-issued photo ID
- • Social Security card or proof of SSN
Conventional vs. FHA vs. Non-QM
| Feature | Conventional | FHA | Non-QM |
|---|---|---|---|
| Minimum Credit Score | 620 (680+ ideal) | 580 (500 with 10% down) | Varies (often 600+) |
| Minimum Down Payment | 3-5% | 3.5% | 10-20% |
| Mortgage Insurance | PMI if <20% down (removable) | Upfront + annual MIP (often permanent) | Typically none |
| Income Documentation | Full W-2/tax returns | Full W-2/tax returns | Bank statements, assets, alternative |
| Property Standards | Flexible | Strict (safety/livability) | Flexible |
| Best For | Strong credit, standard income | Lower credit, smaller down payment | Self-employed, complex income |
Not sure which program fits? Contact Dana for a personalized comparison.
Pro Tips & Common Mistakes
Request PMI removal as soon as you hit 20% equity. Many borrowers forget to ask, but you can request PMI cancellation once your loan-to-value ratio reaches 80%. Keep an eye on your home's value and your principal balance.
Don't make large purchases or open new credit accounts during the loan process. Lenders re-verify your credit and assets right before closing. A new car loan or maxed-out credit card can derail your approval.
Common Mistake: Assuming you need 20% down. Many buyers delay homeownership thinking they need a massive down payment. Conventional loans allow as little as 3-5% down, making homeownership accessible much sooner.
Common Mistake: Not shopping around for rates. Even a 0.25% difference in interest rate can save you tens of thousands over the life of your loan. Work with a broker like West Capital Lending who has access to multiple wholesale lenders.
Serving Borrowers Across 10 States
Dana Peterson is licensed to originate conventional loans in Alabama, Arizona, Colorado, Florida, Idaho, Oklahoma, Pennsylvania, Tennessee, Virginia, and Washington. Whether you're buying a beachfront condo in Florida, a mountain retreat in Colorado, or a suburban home in Virginia, we understand the unique property types, market conditions, and lending nuances in each state.
For example, Florida's condo market requires careful attention to HOA approval and wind mitigation, while Washington's competitive market often demands quick pre-approvals and strong offers. Our multi-state expertise ensures you're not just getting a loan—you're getting localized guidance that accounts for regional best practices and lender overlays.
Frequently Asked Questions
What credit score do I need for a conventional loan?
The minimum credit score is typically 620, but you'll get the best rates and terms with a score of 680 or higher. Scores between 620-679 may require a larger down payment or result in higher interest rates.
Can I use gift funds for my down payment?
Yes! Conventional loans allow gift funds from family members for your down payment and closing costs. You'll need a signed gift letter stating the funds are a gift and not a loan that must be repaid.
How long does it take to close on a conventional loan?
Most conventional loans close in 30-45 days from application to funding. The timeline depends on how quickly you provide documents, the appraisal turnaround time, and the complexity of your financial situation.
What's the difference between conforming and jumbo conventional loans?
Conforming loans fall within the loan limits set by Fannie Mae and Freddie Mac ($766,550 in most areas for 2024). Jumbo loans exceed these limits and typically require larger down payments, higher credit scores, and more reserves.
Can I buy an investment property with a conventional loan?
Absolutely. Conventional loans are one of the best options for investment properties. You'll typically need 15-25% down, and the property's rental income can often be used to qualify for the loan.
How do I remove PMI from my conventional loan?
You can request PMI removal once you reach 20% equity (80% LTV) through a combination of principal paydown and home appreciation. You may need a new appraisal to prove your home's current value. PMI automatically terminates at 78% LTV.
What if I'm self-employed?
Self-employed borrowers can absolutely qualify for conventional loans. You'll need to provide 2 years of personal and business tax returns, and lenders will average your income over that period. If your tax returns show limited income due to write-offs, consider a bank statement loan instead.
Can I use a conventional loan for a condo?
Yes, but the condo project must be approved by Fannie Mae or Freddie Mac. We'll verify the project's approval status during the loan process. Conventional loans are often easier for condos than FHA loans, which have stricter project requirements.
What Our Clients Say
John Sarnecky
24 October 2025
Excellent service with West Capital Funding, Irvine California. Randy Mathis is at the top of the loan business. He saved us a lot of money by getting...
Kimberly Bell
24 October 2025
Eddie at WCL made our re-fi as painless as possible. He is patient, very nice, and extremely helpful. And did it all with a great sense of humor!
Alex Kissling
22 October 2025
Jon was great to work with on the refi of our property. Our situation wasn't straightforward, but Jon listened to what we were looking for, was able t...
Shawn Landreth
22 October 2025
WCL is super easy to work with and has options that work for whatever your needs, and at whatever timing you need!
Holly Pulido
22 October 2025
Sean and his team, Ryan are the kindest communicators. It wasn't checking boxes on next steps, it was from the perspective of the loan applicant that...
Cheverlyn C
21 October 2025
Austin was able to help me with both a refi and a HELOC. We did the refi on our primary to lower the rate and then we got cash out from our investment...
Virginia Donoso
21 October 2025
I'm so happy and grateful to have found someone like Robert Martin, who guided me through this entire process. This was something completely foreign t...
Harold J
21 October 2025
Great people to work with
Janelle Carlson
21 October 2025
Excellent experience from start to finish. Super knowledgeable with an out of state purchase. Travis was very professional and quick to respond to all...
Amy Osborne
21 October 2025
Great experience with Daniel
James Cirillo
21 October 2025
Great lending institution and far superior experience vs the big banks, which are cumbersome, difficult, and inefficient. Carlos Duenas was my lender...
Justin Ryan Pokrywka
21 October 2025
Nate Ferrer was a pleasure to work with. He was a great communicator and found a loan program that worked for my unique situation. He always followed...
wendy Taylor
21 October 2025
The whole team did an outstanding job, I had a very complicated situation and everyone worked extra hard to accomplish the difficult task. Thank You E...
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20 October 2025
Brian was great to work with. He was upfront and honest about the entire process. He is also extremely knowledgeable of the process. He was the first...
Mae Abad
20 October 2025
The service they provided me was exceptional. Brian and his team at West Capital Lending was very quick and efficient. My first time expwrience in ref...
Dan Dabasol
20 October 2025
Prompt, excellent and trust worthy. Always welcoming and open to any concerns and questions. He was confidently and thorough communicator. He will wor...
jose alvarez
20 October 2025
Scott ! Always has taken care of our Family and trusted him .
Shannon Merritt
20 October 2025
I had the absolute pleasure of working with Aaron Beck on the purchase of my home, and I can't recommend him highly enough. From start to finish, Aaro...
Jason Duncan
19 October 2025
Ryan was great, took very little time to complete application and Ryan was there every step of the way, I would highly reccommend this loan company!
Todd Stevenson
19 October 2025
Working with Jedd Lara and his team on securing our recent mortgage was an absolutely outstanding experience from start to finish. We went into the pr...
Deborah Weisberg
19 October 2025
Sam Rubio and Clare Lenza make a fantastic team! After months of working with them, they found the best Reverse Mortgage Program to suit my needs. Sam...
Netsy Rivera
17 October 2025
I can't be thankful enough for what Rafy Boulos from WCL did for me or my family. His professionalism and knowledge to help us, has changed our life 4...
Kahana Bigelow
17 October 2025
Thank you Garrett for making our refinance as easy and painless as possible!!! It really helped lesson our stress financially. The whole process as si...
Danielle Dingwall
17 October 2025
Daniel Becerril is amazing. My go to person
Imelda Hinojosa
17 October 2025
West Capital Lending, under the exceptional guidance of Jon Meer, provided the solution I needed. The process was expedient, communication great and c...
Zoila Coto
17 October 2025
I was very happy with Nathan, he is very responsive and made the process very easy. I would give him a 10 out of ten.
Rosalie Vejar
17 October 2025
Scott is knowledgeable and professional. He listens and is very attentive when asked questions. Hope to continue working with him again in the near fu...
Eli Sewell
16 October 2025
Abraham was extremely professional and was able to answer all of our questions and got us a loan tailored to our needs!!!!
Bobby Botelho
16 October 2025
In a world full of scams and distrusting people, we investigated Sam Zadeh and West Capital Lending prior to contacting him and noticed some great rev...
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16 October 2025
Aaron was incredible—walked us through the process, asked all of the right questions to get us the loan we needed quickly and painlessly. He is a pro...
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7 September 2025
Scott went above and beyond to tailor the loan product to my unique situation. A+++
Ready to Get Started with Your Conventional Loan?
Let's discuss your goals and find the best conventional loan option for your situation. Get your personalized rate quote today.
This is not a commitment to lend. All loans subject to credit approval and underwriting guidelines.
West Capital Lending is an Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and acceptable collateral. Interest rates, terms, and program availability may change without notice. Not all applicants will qualify. Information is for educational purposes only and is not financial or legal advice.
Company NMLS: 1566096 | MLO NMLS: 173133 (Dana Peterson)
Address: 24 Executive Park, STE 250, Irvine, CA 92614
Licensed in: AL, AZ, CO, FL, ID, OK, PA, TN, VA, WA