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Conventional Mortgage
Loans in Grand Junction

A conventional mortgage is one of the most common ways to finance a home. These loans aren’t backed by a government program like FHA or VA—instead, they follow guidelines set by Fannie Mae and Freddie Mac.

For many buyers across the Western Slope, conventional loans offer the right balance of flexibility, affordability, and long-term value.

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What to Expect with a Conventional Loan

Down payment options

  • As little as 3% down for qualified first-time homebuyers
  • Many buyers choose 5%, 10%, or more depending on their goals
  • Putting 20% down allows you to avoid mortgage insurance altogether

 

Loan structure

  • Fixed-rate options with consistent monthly payments (15, 20, or 30 years)
  • Adjustable-rate mortgages (ARMs) with lower starting rates and flexible timelines
  • Loan limits that follow current conforming guidelines

What You’ll Typically Need to Qualify

Credit and financial profile

  • Credit score usually starting around 620 (higher scores = better rates)
  • Debt-to-income ratio generally around 45% or lower
  • Stable, consistent income that can be clearly documented

 

Assets and savings

  • Funds available for your down payment and closing costs
  • Financial reserves may be required depending on the loan

Why Many Buyers Choose Conventional Loans

  • No upfront mortgage insurance like FHA loans
  • Lower monthly mortgage insurance costs in many cases
  • Ability to remove PMI once you build enough equity
  • Fewer restrictions on property types and condition
  • Options for second homes and investment properties

Understanding Private Mortgage Insurance (PMI)

If your down payment is less than 20%, PMI will likely be part of your loan—but it’s not permanent.

  • Typically added as a monthly cost to your payment
  • Amount depends on your credit score, down payment, and loan terms
  • Can be removed once you reach 20% equity
  • Automatically drops off at 22% equity in most cases
  • May be removed sooner with refinancing or a new appraisal

Is a Conventional Loan Right for You?

Conventional loans are often a great fit if you:

  • Have good to excellent credit
  • Have steady, reliable income
  • Can put down at least 3–5%
  • Are buying a primary home, second home, or investment property
  • Want flexibility in how your loan is structured

Local Guidance Makes the Difference

Choosing the right loan isn’t just about numbers—it’s about understanding your options and making a decision that fits your long-term goals.

At First Choice Financial, we work with buyers throughout Grand Junction and the Western Slope to make the process simple, clear, and personalized.

Get in Touch

First Choice Financial

Grand Junction, CO

(970) 683-1910