The short answer
A conventional loan is a mortgage that is not insured or guaranteed by a government agency. Most follow guidelines set by Fannie Mae and Freddie Mac, and they can be used for a primary residence, an eligible second home, or an investment property.
Mortgage guidance with Jennifer Reich · NMLS 162239
Conventional financing is where Jennifer spends most of her time, and for good reason: it is flexible, widely available, and fits a broad range of buyers and homeowners. Because there is no government insurance behind the loan, qualification leans on your credit history, income, assets, and the property itself.
The right conventional structure depends on how you will use the home, how much you plan to put down, and how long you expect to keep the loan. Those choices affect your rate, mortgage insurance, and monthly payment — which is why a clear side-by-side comparison matters.
How does conventional purchase financing work?
You apply, provide documentation of income, assets, and debts, and the lender reviews your credit and the property appraisal. Once the loan is approved and conditions are met, you close and the loan funds your purchase.
Conventional loans are often described as conforming (within the loan limits set each year by the Federal Housing Finance Agency) or non-conforming, such as jumbo loans above those limits. Loan limits change annually, so Jennifer will confirm the current figure for your county.
Primary residence, second home, or investment property?
Occupancy is one of the most important details in any conventional loan. A primary residence is the home you live in most of the year. A second home is typically a property you occupy part of the year for personal use, with limits on rental arrangements. An investment property is purchased to generate rental income.
Each occupancy type carries different down payment, rate, and reserve requirements. Occupancy must be represented accurately — it is a legal certification, not a pricing choice. If you are considering a Southern Utah getaway, see the guide on second-home versus investment-property financing.
How much do you need for a down payment?
Some conventional programs allow a down payment as low as 3% for eligible primary-residence buyers, while second homes and investment properties typically require more. A larger down payment can lower your monthly payment and may reduce or eliminate mortgage insurance, but it also uses cash you may want to keep in reserve.
There is no single right answer. Jennifer can show how different down payment amounts change your payment, cash to close, and mortgage insurance so you can choose with confidence.
What is private mortgage insurance (PMI)?
When you put down less than 20% on a conventional loan, lenders generally require private mortgage insurance. PMI protects the lender, not you, but it is what makes lower down payments possible.
Unlike some government-backed mortgage insurance, conventional PMI can typically be removed once you reach enough equity, subject to the rules of your loan and the Homeowners Protection Act. Ask Jennifer how cancellation would work for your specific scenario.
Fixed-rate or adjustable-rate?
A fixed-rate mortgage keeps the same interest rate and principal-and-interest payment for the life of the loan, commonly 30 or 15 years. An adjustable-rate mortgage (ARM) typically starts with a fixed period — for example five, seven, or ten years — and then adjusts on a set schedule within defined caps.
ARMs can make sense for some borrowers who expect to move or refinance before the adjustment period, but they carry the risk of a higher payment later. Availability of specific ARM structures varies; Jennifer will walk through what is offered for your situation.
Who may want to explore it
- Buyers with established credit and steady, documentable income
- Homeowners purchasing a second home or investment property
- Buyers who want the option to remove mortgage insurance as equity grows
- Borrowers comparing fixed and adjustable structures
Documentation & eligibility
- Recent pay stubs and W-2s, or tax returns if self-employed
- Two months of bank and asset statements
- Government-issued photo ID
- Details on current debts and any properties you already own
- Purchase contract once you are under contract
Benefits
- Usable for primary homes, eligible second homes, and investment properties
- Low down payment options for eligible primary-residence buyers
- PMI can generally be removed once enough equity is reached
- Wide range of terms, including fixed and adjustable options
Tradeoffs
- Credit history has a larger effect on pricing than with some government programs
- Second homes and investment properties require more down payment and reserves
- Debt-to-income limits can be tighter for some profiles
Questions to ask Jennifer
- How would 5%, 10%, and 20% down change my payment and cash to close?
- How and when could PMI be removed on my loan?
- Does a fixed or adjustable rate fit how long I plan to stay?
- What reserves would I need for a second home or rental?
- What is the current conforming loan limit in my county?
Conventional Loans: common questions
How does conventional purchase financing work?
You apply, provide documentation of income, assets, and debts, and the lender reviews your credit and the property appraisal. Once the loan is approved and conditions are met, you close and the loan funds your purchase. Conventional loans are often described as conforming (within the loan limits set each year by the Federal Housing Finance Agency) or non-conforming, such as jumbo loans above those limits. Loan limits change annually, so Jennifer will confirm the current figure for your county.
Primary residence, second home, or investment property?
Occupancy is one of the most important details in any conventional loan. A primary residence is the home you live in most of the year. A second home is typically a property you occupy part of the year for personal use, with limits on rental arrangements. An investment property is purchased to generate rental income. Each occupancy type carries different down payment, rate, and reserve requirements. Occupancy must be represented accurately — it is a legal certification, not a pricing choice. If you are considering a Southern Utah getaway, see the guide on second-home versus investment-property financing.
How much do you need for a down payment?
Some conventional programs allow a down payment as low as 3% for eligible primary-residence buyers, while second homes and investment properties typically require more. A larger down payment can lower your monthly payment and may reduce or eliminate mortgage insurance, but it also uses cash you may want to keep in reserve. There is no single right answer. Jennifer can show how different down payment amounts change your payment, cash to close, and mortgage insurance so you can choose with confidence.
Utah mortgage guidance
A local conversation. A property-specific plan.
Jennifer serves borrowers in Davis County and Washington County from her Kaysville office. Eligibility depends on your financial profile, the actual property, and the loan program—not simply the city where you buy.
Office: 69 East 200 North, Suite A, Kaysville, UT 84037. Programs and terms are subject to underwriting and may change.