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conventional mortgage
The most popular mortgage option with a range of available terms, flexibility, and competitive rates — all designed to meet your homeownership goals.
simple. reliable. conventional.
flexible solutions for a variety of homeownership goals
Whether you’re buying or refinancing a primary residence, second home, or investment property, a conventional loan provides competitive rates and flexible terms to fit your financial goals.
We offer both Fixed Rate Mortgages (FRM) and Adjustable Rate Mortgages (ARM) with options including 3/1 ARM, 5/1 ARM, 7/1 ARM, and fixed terms ranging from 10 to 30 years.
This popular loan type, which according to Census Data, accounted for 73% of all new single-family homes financed in 2023, is ideal for members with a variety of credit profiles who are looking to purchase or refinance a home with predictable monthly payments over the life of the loan. Our local mortgage advisors are ready to find the loan that's best for your unique situation and offer guidance.
Features
- Fixed and Adjustable Rate options – Choose a fixed rate or a potential lower initial rate with an ARM
- Flexible term lengths – From 10-year to 30-year terms, we offer several different term options, including ARMs
- Eligible property types – Primary residence, second home, or investment property
- No private mortgage insurance (PMI) with 20%+ down
- Predictable monthly payments – Fixed-rate loans offer stable payments over time
- Can be used for purchases or refinances
Ideal For
A conventional mortgage is ideal for those borrowers with a moderate-strong credit history, stable income, have plans to contribute at least some money down, and that are seeking a consistent monthly payment.
Frequently Asked Questions
There are plenty of benefits to a conventional mortgage, including:
- Lower Interest Rates – In most cases, a conventional mortgage is able to offer the most competitive interest rates, which potentially can save a borrow thousands over the life of the loan.
- Flexible Loan Terms – Conventional mortgages offer a variety of term lengths, typically ranging from 10 to 30 years. Borrowers often also have the choice between fixed or adjustable-rate loan types.
- Private Mortgage Insurance (PMI) – Conventional mortgages do not require PMI, if the down payment is 20% or more. Or, if your down payment was less than 20%, it can be removed once your loan reaches that 20% threshold.
- Higher Loan Limits – Compared to most government-backed loan types, conventional mortgages offer higher borrowing amounts.
A: Conventional mortgages generally require a stronger credit profile than government-backed loans. Each situation is unique, but as a rule of thumb, borrowers with good to excellent credit typically receive the most favorable terms.
If you’d like to review your credit qualifications, connect with a Mortgage Advisor.
A: Conventional mortgages offer flexible down payment options. Many Members qualify with as little as 3–5% down, while putting 20% down removes the need for Private Mortgage Insurance (PMI).
A Mortgage Advisor can help determine your minimum required down payment, and if you would qualify to eliminate PMI.
A: Conventional loans can be used for a variety of property types, including:
- Primary residences
- Second homes
- Investment properties
Loan requirements and down payment minimums may differ by occupancy type. A Mortgage Advisor can review your property goals with you.
Conventional loan limits are set by Fannie Mae and Freddie Mac and vary from year to year. In 2026, for most states, the maximum loan amount for a single-unit property is $832,750. To learn more about loan limits, click here.
If you’re seeking a loan exceeding this amount, consider a Jumbo Loan.
A: Yes. United offers both Fixed-Rate Mortgages (FRM) and Adjustable-Rate Mortgages (ARM) under the conventional loan program. ARM options include 5/1 ARM and 7/1 ARM, while fixed-rate terms range from 15 to 30 years.
If you’re unsure which option fits your budget or timeline, talk with a Mortgage Advisor.
A: Yes. One of the key advantages of a conventional mortgage is that Private Mortgage Insurance (PMI) can typically be removed once your loan reaches an eligible loan-to-value (LTV) ratio, between 78–80%.
A Mortgage Advisor can help estimate when your PMI may be eligible for removal.
A: It depends on your financial situation. Conventional loans often offer lower long-term costs for borrowers with strong credit and can be used for second homes or investment properties. FHA loans may be better for Members with limited credit history or smaller down payments.
A Mortgage Advisor can help compare both options to find the best fit.
plan your next move
explore our mortgage calculators
Understanding your mortgage options can make a big difference in your financial future. Our mortgage calculators help you figure out monthly payments, estimate costs, and explore loan types to find what works best for you. Whether you’re buying a home, refinancing, or planning for the future, these tools give you the information you need to make confident choices.
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Offer and terms subject to change. Loans subject to credit and collateral approval. Rate and term based on individual credit history and program guidelines. Consult a mortgage advisor for more details.
[1] Offer and terms subject to change. Loans subject to credit and collateral approval as well as program terms and conditions, available on new mortgage applications. Payment examples: $250,000 financed for 120 months at a fixed rate of 6.850% APR equals a monthly payment of $2,854.63. $250,000 financed for 180 months at a fixed rate of 6.785% APR equals a monthly payment of $2,194.98. $250,000 financed for 360 months at a fixed rate of 7.100% APR equals a monthly payment of $1,663.26. Payment example does not include amounts for taxes and insurance premiums. If applicable, actual payment obligation will be greater. Up to 360 months financing available. Depending on loan type, rate may be increased after consummation. Certain restrictions apply.