Conventional Loans
The most popular path to homeownership — flexible terms, competitive rates, and a great fit for buyers with steady credit and income.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency. Instead, it is originated by private lenders and often follows guidelines set by Fannie Mae and Freddie Mac. For buyers with solid credit and steady income, a conventional loan is one of the most flexible and widely used financing options in the Flathead Valley market.
Down Payment
Conventional loans can go as low as 3-5% down for qualified buyers, though putting down 20% allows you to avoid private mortgage insurance (PMI) altogether.
Credit & Qualifying
Lenders generally look for a credit score of 620 or higher, along with a manageable debt-to-income ratio. Buyers with stronger credit typically qualify for better interest rates.
Mortgage Insurance
If your down payment is less than 20%, you will likely pay PMI, which can usually be removed once you reach 20% equity in your home.
Interest Rates & Loan Terms
Because conventional loans carry less risk for the lender when a buyer has strong credit and a solid down payment, they’re often priced very competitively. Most buyers choose a fixed-rate 30-year or 15-year term for predictable payments, though adjustable-rate options exist for buyers with a shorter time horizon in their home.
Loan Limits
Conventional loans that meet Fannie Mae and Freddie Mac guidelines are called “conforming” loans and are subject to a maximum loan amount set annually by the Federal Housing Finance Agency. Loan amounts above that threshold are considered jumbo loans and follow different guidelines. Your lender can confirm the current limit for the county where you’re buying.
Who It’s Best For
- Buyers with good to excellent credit
- Buyers who can put down at least 3-5%
- Anyone who wants flexible terms without government program requirements
- Buyers purchasing a second home or investment property
How to Get Started
- Get pre-approved so you know your realistic price range.
- Work with your agent to find the right home in the Flathead Valley.
- Lock in your interest rate once you are under contract.
- Provide documentation and complete underwriting with your lender.
- Close on your home and get your keys!
Ready to talk through your options? Explore all of our financing resources, or reach out to our team — we’re happy to help you figure out which loan program fits your goals.