Purchase Loans
Conventional
The standard. Fixed or adjustable. Great credit? This is usually your best rate.
Conventional loans are the most common mortgage type in the country and the default for most Washington buyers with decent credit. They're not backed by a government agency (no FHA, VA, or USDA stamp) — which means slightly stricter requirements but usually the best long-term cost for well-qualified borrowers.
Key Features
- • 15, 20, and 30-year fixed terms (and ARM options)
- • Down payments as low as 3% for first-time buyers
- • PMI drops off at 20–22% equity — it's not forever
- • No upfront mortgage insurance premium (unlike FHA)
- • Works for primary homes, second homes, and investment properties
- • Sold to Fannie Mae or Freddie Mac, so guidelines are consistent across lenders
How it works
A conventional loan follows Fannie Mae or Freddie Mac guidelines and is underwritten through an automated system (Desktop Underwriter or Loan Product Advisor). The lender verifies your income, assets, credit, and the property, then issues a conditional approval. If you put less than 20% down, PMI is added until you build enough equity. Most conventional loans are sold to Fannie or Freddie after closing, which is why the rules are nearly identical across the 30+ lenders I work with — the difference is pricing.
What this looks like in Washington
In King, Snohomish, and Pierce counties, the high-cost conforming limit ($1,209,750 in 2025) covers the vast majority of homes — so most Seattle and Eastside buyers stay in conventional territory rather than jumping to jumbo. In Spokane, Tri-Cities, and Vancouver, the baseline limit ($806,500) is more than enough for typical price points. WSHFC's Home Advantage program layers cleanly on top of conventional financing for down payment help.
Pros
- • Lowest long-term cost for strong credit
- • PMI cancels — it's not forever
- • Flexible: primary, second home, or investment
- • Faster appraisal turn times than FHA/VA
Cons
- • Stricter credit minimums (620+)
- • PMI required under 20% down
- • Tighter DTI than FHA
- • Less seller-paid closing cost flexibility than VA
Best for: Buyers with 620+ credit, stable income, and a goal of the lowest overall cost. Especially strong if you can put 5%+ down or plan to refinance out of PMI within a few years.
Common Questions
Related Loan Types
Popular WA markets for Conventional
Conventional loans are the default across nearly every WA market — here's where I close them most often.