When is a Conventional Loan the Right Mortgage Option in Stockton? Conventional loans are great options for home buyers with little debt and a solid credit score. Furthermore, if you can put at least 20% down on the home, you can avoid having to pay private mortgage insurance (or PMI as it is commonly referred to). This will lower your monthly mortgage payments. If you don’t have the financial means to put that much down, you can put as little as 3% down on a conventional loan. In most cases, you’ll save money over the long term with a conventional loan since you’re not required to pay mortgage insurance upfront. Plus, your monthly insurance payments will be cheaper. In addition to this, you can request to have PMI cancelled once the equity in your home reaches 20% of its market value. While other loans may require lower credit scores and are therefore easier to qualify for, you may not be required to pay for mortgage insurance if you can make a large enough down payment. Keep in mind that the decision to go with a conventional loan depends on your financial situation. https://maps.google.com/maps?cid=4791781880556229538