Conventional Loans in Rhode Island
Conventional loans are a popular choice for homebuyers with solid credit who want flexibility and long-term savings. Unlike FHA loans, you can remove private mortgage insurance once you hit 20% equity — saving you money every month. As a broker, we shop your conventional loan across multiple lenders to get you the best rate.
What Is a Conventional Loans?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency. Instead, it follows guidelines set by Fannie Mae and Freddie Mac. This means conventional loans typically offer the most competitive rates for borrowers with strong credit profiles.
The biggest advantage of a conventional loan over FHA is the ability to cancel your private mortgage insurance (PMI) once you reach 20% equity in your home. With FHA, mortgage insurance stays for the life of the loan in most cases.
As an independent broker, Best Financial has access to multiple conventional lenders. This means we can compare rates, fees, and terms across our network to find the best deal for your specific situation — something a single bank cannot do.
Requirements
Credit Score
Minimum 620. Better rates available above 740.
Income
Standard W2 documentation. 2-year employment history.
Down Payment
As low as 5%. Put 20% down to avoid PMI.
DTI Ratio
45-50% or less.
Benefits
Remove PMI
Once you reach 20% equity, your private mortgage insurance drops off. FHA doesn't offer this.
Flexible Terms
15, 20, or 30-year options. Fixed or adjustable rates.
Competitive Rates
Strong credit borrowers get the best rates in the market.
Who Qualifies?
- Credit score of 620 or higher
- Stable income with 2-year employment history
- Down payment of at least 5%
- Debt-to-income ratio under 50%
Application Process
Pre-Approval
We assess your credit, income, and assets to determine your buying power.
Rate Shopping
We compare rates across our lender network to find the best conventional option for you.
Application & Documentation
We guide you through the application and collect all required documents.
Underwriting
We manage the lender review process and address any conditions quickly.
Closing
Sign your documents and get the keys to your new home.