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Conventional Mortgage Loans

Conventional Loans in Washington & Idaho

The most flexible purchase loan available. Available in 15-year and 30-year fixed terms, Beeline shops multiple lenders to get you the most competitive rate.

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Chris Hendrickson NMLS #145552 | Beeline Mortgage LLC NMLS #1713379 | Licensed in WA & ID

3%
Min Down Payment
620+ credit score required
620+
Min Credit Score
Better rates at 740+
$806,500
Conforming Loan Limit
2025 standard limit
15 or 30
Loan Terms (Years)
Fixed rate options
The Basics

What Is a Conventional Loan?

A conventional mortgage is any home loan that isn't backed by a government agency like the FHA, VA, or USDA. Instead, conventional loans conform to the standards set by Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that buy and securitize most mortgages in the U.S. Because of this, they're often called "conforming loans" when they fall within the established loan limits.

Conventional loans are the most widely used mortgage product in the country. They're available in 15-year and 30-year fixed-rate terms and can be used for primary residences, second homes, and investment properties, giving them flexibility that government-backed loans like FHA and VA don't have. The 2025 conforming loan limit for standard counties in Washington and Idaho is $806,500.

Unlike FHA loans, conventional loans don't require mortgage insurance when you put 20% or more down. If you put less than 20% down, private mortgage insurance (PMI) is required, but it drops off automatically once your loan-to-value ratio reaches 80%, something FHA MIP doesn't do for most borrowers. For buyers with strong credit, conventional loans typically offer the most competitive long-term cost.

Ideal Borrower

Who Is Conventional Right For?

May Not Be the Best Fit If...

  • ✅Buyers with 620+ credit score (best rates at 740+)
  • ✅Buyers with 20% down who want to avoid PMI entirely
  • ✅Buyers purchasing a second home or investment property
  • ✅Buyers who want a shorter 15-year term to build equity faster
  • ✅Move-up buyers with equity from a prior home sale
  • ✅Borrowers who plan to reach 20% equity and drop PMI
  • ✗Credit score is below 620, FHA may be easier to qualify
  • ✗Very limited down payment with lower credit, FHA has more flexible requirements
  • ✗You're an eligible veteran, VA loan typically offers better terms
  • ✗Your purchase is in a USDA-eligible rural area, USDA at 0% down may beat 3% conventional
Qualification Requirements

Conventional Loan Requirements

Credit Score
620+ Minimum
Rate tiers improve significantly at 680, 720, and 740+. Strong credit is where conventional really shines.
Down Payment
3% Minimum
20% down eliminates PMI entirely. 10% and 15% down options available. Gift funds allowed with restrictions.
Debt-to-Income
Up to 45-50%
Standard guideline is 45%. DU approval can push to 50% in some scenarios. Less flexible than FHA on DTI.
PMI
Required under 20% down
Drops automatically at 80% LTV, or request removal at 80% LTV based on current value. Not permanent like FHA MIP.
Loan Limit
Up to $806,500
2025 conforming limit for standard counties. Above this is jumbo territory with different lender requirements.
Occupancy
Primary, Second Home, Investment
Most flexible occupancy options of any loan type. Rate and down payment requirements vary by occupancy type.
Why Beeline for Conventional

The Beeline Advantage for Conventional Loans

Conventional loan pricing varies more between lenders than most buyers realize. Fannie/Freddie set the guidelines, but every lender prices to those guidelines differently based on their cost of capital, overlays, and risk appetite. Beeline shops multiple conventional lenders to find the most competitive rate for your credit tier and loan size.

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Rate Tier Optimization
Conventional pricing uses LLPA (Loan Level Price Adjustments) based on credit score and LTV. We optimize across lenders to minimize your LLPA hit.
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FHA vs. Conventional Comparison
For buyers on the fence, we run a full comparison, monthly payment, PMI, MIP, long-term cost, so you can make an informed decision.
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15 vs. 30-Year Analysis
We model both terms side by side. The 15-year builds equity faster and carries a lower rate, we'll show you exactly what the payment difference means in your situation.
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Investment & Second Home Expertise
Not all lenders price investment properties the same way. We find the most competitive options for second homes and rentals where the spread between lenders is largest.
Local Context

Conventional Loans in Washington & Idaho

Conventional financing is the dominant purchase loan in the Spokane/North Idaho market, used for the majority of transactions in Spokane, Liberty Lake, Coeur d'Alene, Tri-Cities, and the surrounding area. With the 2025 conforming limit at $806,500, conventional covers essentially every property in these markets at standard rates.

For buyers with good credit and a reasonable down payment, conventional typically offers the lowest long-term cost. Move-up buyers selling an existing home usually bring enough equity for 20%+ down, eliminating PMI and making conventional the clear choice. First-time buyers with 740+ credit and 5-10% down can also do very well with conventional, often better than FHA once you factor in the permanent MIP on FHA.

Second homes around Lake Coeur d'Alene, Sandpoint, or rural Idaho/Eastern Washington properties often use conventional financing as well. The flexibility of conventional to cover non-primary occupancies makes it the go-to for move-up buyers keeping a prior home as a rental or purchasing a lake cabin.

Common Questions

Conventional Loan FAQ

A 15-year loan carries a lower interest rate (typically 0.5-0.75% lower than 30-year) and builds equity much faster, but the monthly payment is significantly higher. A 30-year loan has a lower monthly payment and more cash flow flexibility, but you pay more interest over time. Beeline models both scenarios with your actual numbers so you can see the real tradeoff before deciding.
PMI drops automatically when your loan balance reaches 78% of the original purchase price (based on amortization schedule). You can also request removal at 80% LTV based on current market value, which may allow earlier cancellation if your home has appreciated. This is a major advantage over FHA MIP, which stays for the life of the loan if you put less than 10% down.
Yes, conventional is often the go-to for investment property financing when you want to use personal income to qualify (as opposed to DSCR). Investment properties require a minimum 15% down (typically 20-25% for best rates), higher credit score minimums, and carry higher rate adjustments than primary residences. Chris shops multiple lenders to minimize these adjustments.
Generally yes for buyers with 700+ credit scores, but it depends on the down payment. With 5% down and a 700 score, conventional PMI might cost less than FHA MIP, and PMI drops off while MIP doesn't. At lower credit scores (620-680), FHA can sometimes offer a lower rate that offsets the MIP cost. We run both scenarios side by side so you're not guessing.
For 2025, the standard conforming limit is $806,500 in Spokane County, Kootenai County (CdA/Post Falls), Benton and Franklin Counties (Tri-Cities), and most other regional counties. Purchases above this threshold require jumbo financing with different lender criteria and pricing.
Yes. Conventional loans allow second home purchases with as little as 10% down. Second homes must be located a reasonable distance from your primary residence and can't be rented out on a full-time basis (which is where DSCR loans come in for true investment use). The rate is slightly higher than primary residence pricing but lower than a pure investment property.
Conventional Loans

See What a Conventional Loan Costs You

Start your application and Chris will compare conventional options across multiple lenders, including a 15 vs. 30-year breakdown if you want it.

Get Your Rate Ask a Question

Chris Hendrickson NMLS #145552 | Beeline Mortgage LLC NMLS #1713379 | Licensed in WA & ID