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Conventional Loans in Ohio

Straightforward, flexible home financing for buyers in Mason, Loveland, and across Ohio.

Ohio couple holding house keys in front of their new home they bought with a conventional loan

What Is a Conventional Loan?

A conventional loan is a type of mortgage that follows guidelines set by Fannie Mae and Freddie Mac. It’s one of the most common loan types used by homebuyers across Mason, Maineville, Loveland, and nearby Ohio towns.

Whether you’re buying a home or refinancing, conventional loans offer flexibility with competitive rates and a range of down payment options.

Who Can Qualify?

Conventional loans work best for borrowers with decent credit and steady income. Unlike FHA, VA, or USDA loans, they come with fewer restrictions — but also expect a bit more from your credit profile.

Basic Requirements

Credit Score: Typically 620 or higher
Debt-to-Income Ratio (DTI): Must be under 50%
Loan Limit: Must fall within conforming limits that are set by the Federal Housing FInance Agency (FHFA)

How Much Do I Need for a Down Payment?

The required down payment depends on your situation:

Purchase Loans

First-time buyer or income below 80% AMI: 3% down
Buying a primary home (1-unit): 5% down
Multi-unit property (2+ units): 15% down
Second home: 10% down

Refinance

Cash-Out Refinance: Must have at least 20% equity

What About PMI (Private Mortgage Insurance)?

If you’re putting down less than 20%, PMI is required.

PMI helps protect the lender — but it won’t last forever:

You can ask to remove it once you reach 20% equity
It falls off automatically once you hit 22%

You can pay PMI monthly, or in some cases, the lender can cover it in exchange for a slightly higher interest rate. More on how PMI works (via CFPB).

How Does a Conventional Loan Compare?

Versus FHA Loans

FHA allows lower credit scores (as low as 580 for 3.5% down payment)
Down payment is 3.5% minimum
FHA’s mortgage insurance stays for the life of the loan (with a 3.5% down payment)
Conventional loans may drop PMI once you build equity

Versus VA Loans

VA loans are only for eligible veterans
VA loans require no down payment and no PMI
Conventional loans are open to all borrowers who qualify

Versus USDA Loans

USDA loans are only for rural areas
USDA includes a “guarantee fee” (similar to PMI)
Conventional loans work in all areas, rural, suburban, and city

Want to see if another loan type fits better? Compare with FHA loans or VA loans.

Rates Change Daily, Let’s Talk Numbers

Your credit score, down payment, and loan structure all affect your rate. Rates can shift quickly. I’ll help you compare the numbers and walk through what makes the most sense for your budget. Use my Purchase Calculator to estimate your monthly payment.

Click here to get your custom rate quote

Serving Homebuyers Across Ohio

I work with clients in:

Mason, OH
Maineville, OH
Loveland, OH
Lebanon, OH
Morrow, OH
South Lebanon, OH
West Chester, OH
Blue Ash, OH

And anywhere else in Ohio.

Whether you’re buying your first home or your fourth, I’ll guide you through each step with honest advice and no pressure.

FAQs About Conventional Loans in Ohio

NO COST. NO PRESSURE. JUST A CONVERSATION

Call or Text: 513-562-7926 or click to ask a quick question or get a second opinion

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