Conventional Loans
The loan most Portland buyers end up with — and usually the right call. As little as 3% down with solid credit.
Overview
A conventional loan is a mortgage that isn't backed by a government agency — it follows Fannie Mae and Freddie Mac guidelines instead. For borrowers with a 620+ credit score, it's usually the simplest, cheapest path to a Portland home: down payments start at 3%, mortgage insurance drops off once you reach 20% equity, and the paperwork is lighter than FHA. The Lindley Team walks you through whether conventional beats FHA for your numbers — the answer depends on your credit score and down payment, and we'll show you both side by side.
Who It's For
How It Works
Credit & Numbers Review
We look at your credit, income, and savings, and show you conventional vs. FHA side by side. One is usually clearly better for you.
Pre-Approval
We turn around a real answer in 24-48 hours. If you qualify, you get a letter Portland sellers take seriously.
Rate & Structure
We lock your rate and pick the term and PMI structure that costs you the least over the years you'll actually own the home.
Close
We manage underwriting, appraisal, and closing. You show up and sign.
Requirements
These are general guidelines, not a quote or commitment to lend. Actual terms depend on credit approval, income, and underwriting — not all applicants will qualify, and programs and requirements are subject to change without notice. Through Movement Mortgage we have access to additional programs with different requirements. Contact David & Bri for options specific to your situation.
Pros & Cons
Advantages
Considerations
FAQ
5 questions
What credit score do I need for a conventional loan?
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620 is the minimum, but pricing improves meaningfully as your score climbs — 740+ gets the best rates. If you're in the 620-680 range, we'll compare conventional against FHA, because FHA sometimes wins on monthly payment at lower scores.
Is 3% down really possible on a conventional loan?
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Yes — first-time buyer conventional programs allow 3% down. On a $500,000 Portland home, that's $15,000. You'll pay PMI until you reach 20% equity, but unlike FHA, it eventually goes away without refinancing.
Conventional vs. FHA — which is better?
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It depends almost entirely on your credit score and down payment. Strong credit usually favors conventional (cheaper PMI that cancels). Lower scores or thin savings can favor FHA. We run both and show you the actual monthly numbers — it takes about ten minutes.
What is PMI and how do I get rid of it?
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Private mortgage insurance protects the lender when you put down less than 20%. It's removable: once you reach 20% equity through payments or appreciation, you can request cancellation, and at 22% it drops automatically. That's a major advantage over FHA's insurance, which usually lasts the life of the loan.
What's the conforming loan limit in Portland?
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Conforming limits adjust annually and vary by county. If your loan amount is above the limit for Multnomah, Washington, or Clackamas County, you're in jumbo territory — which we also handle. We'll tell you which side of the line you're on in the first call.
Ready to explore conventional?
Schedule a complimentary consultation. We'll review your situation and tell you honestly whether this is the right move.