805-527-6000
Bold New Vision. Same Trusted Mortgage Expertise. Serving homeowners across California, Texas & Idaho.
KNB Capital · Loan Programs
Conventional
Home Loan
The most flexible purchase and refinance option for borrowers with strong credit. Shop 100+ wholesale lenders — not just one bank’s rate.
The Basics
What Is A Conventional Loan?
A conventional loan is any mortgage not guaranteed or insured by the federal government. It follows guidelines set by Fannie Mae or Freddie Mac. Loans can be conforming — within GSE limits — or non-conforming (jumbo) for higher amounts.
Conventional loans offer the most flexibility in terms of property types, loan structures, and PMI removal options. For borrowers with solid credit, they often deliver lower long-term costs than FHA — especially once you account for MIP over time.
Do You Qualify?
Conventional Loan Requirements
Down Payment
As little as 3% down. On a $600,000 home that’s $18,000. PMI applies below 20% but can be canceled automatically once you reach 20% equity — unlike FHA.
Credit Score
620 minimum, but rates improve significantly at 700+, 720+, and 740+. KNB Capital shops lenders to find the best pricing tier for your exact score.
Property Types
Primary residences, second homes, and investment properties all eligible. Wider property type acceptance than FHA — including non-warrantable condos with some lenders.
Debt-to-Income
Standard DTI up to 45–50% with strong compensating factors. We analyze your full financial picture to find a lender whose overlays work for your situation.
Common Questions
What Conventional Borrowers Ask Us Most
How Is KNB Capital Different From A Bank?
A bank offers one lender’s rate. KNB Capital shops dozens of wholesale programs to find the structure that fits your life — not their quota. Same loan, better pricing.
When Can I Remove PMI?
Conventional PMI can be canceled when your loan-to-value reaches 80% — either through payments, appreciation, or a combination. You can also request removal at 80% or it automatically drops at 78%.
Fixed vs ARM — Which Should I Choose?
Fixed rates offer payment certainty. ARMs offer lower initial rates if you plan to sell or refinance within 5–7 years. We model both scenarios with real numbers so you can decide with confidence.
Ready To See Your Rate?
No obligation. No hard pull. Get a wholesale quote in minutes.