How is Conventional PMI different from FHA mortgage insurance?

Conventional PMI is cancellable once your loan-to-value reaches 80% (either through paydown or appraisal). FHA mortgage insurance, on loans originated since 2013, lasts the entire loan term unless you refinance out of FHA. This is a major lifetime cost advantage for Conventional.

What's the Conventional 97 program?

Conventional 97 (or HomeReady / Home Possible from Fannie/Freddie) is a 3%-down Conventional mortgage for first-time buyers. It's often a better long-term choice than FHA for buyers with 680+ credit because the PMI is cancellable.

Are Conventional rates lower than FHA?

Not always. At lower credit scores (620–660) FHA is often cheaper. At higher credit scores (700+) Conventional is typically cheaper monthly because the PMI is lower and cancellable. The right answer depends on your specific file.

What is the 2024 Conventional loan limit in Missouri?

For most Missouri counties the 2024 conforming loan limit for a single-family home is $766,550. Loans above that are considered Jumbo and follow different guidelines.

Loan Program · Conventional

Conventional Loans in Missouri

The default mortgage for most Missouri buyers — and the one that's usually cheapest in the long run if your credit is strong.

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Quick Answer

In one paragraph

A Conventional loan is any mortgage that isn't backed by a government agency (FHA, VA, USDA). Conforming Conventional loans follow Fannie Mae / Freddie Mac guidelines and allow as little as 3% down for first-time buyers, 5% for repeat buyers. PMI is required under 20% down but is cancellable once you reach 20% equity — a major lifetime advantage over FHA.

Key Takeaways

What to remember

As little as 3% down for first-time buyers (5% standard for repeat buyers).
Best pricing at 740+ credit and 20%+ down, but 620+ qualifies.
PMI required under 20% down but cancellable once you hit 20% equity — unlike FHA mortgage insurance.
2024 Missouri conforming loan limit: $766,550 for a single-family home (higher in some MSAs).
Most flexible on property type — Conventional works on condos, manufactured homes, second homes, and investment properties.

Who this is for

Is this you?

Buyers with 680+ credit and at least 5% down
First-time buyers using a 3% down Conventional 97 program
Anyone planning to put 20% down (no PMI ever)
Buyers of condos, second homes, or investment property
Borrowers who want the option to drop PMI in a few years as equity builds

Requirements & Guidelines

The numbers that matter

Minimum credit score: 620 (best pricing 740+)
Down payment: 3% (first-time) / 5% / 20%
Max DTI: Typically up to 50% with strong file
PMI: Required under 20% down; cancellable at 20% equity
Loan limit (2024): $766,550 standard MO single-family
Property type: Primary, second home, or investment

Bryan's Expert Insight

What experience teaches

FHA vs Conventional isn't a credit-score decision — it's a math decision. At 680+ FICO, Conventional with PMI is almost always cheaper monthly than FHA. At 620–660, FHA wins. I run both quotes side-by-side for every Missouri buyer in that band so you can see the real number, not a rule of thumb.

— Bryan Jones, Senior Mortgage Broker · 14+ years · 1,000+ closed loans

Frequently Asked

Common questions, direct answers

620 is the floor, but pricing improves significantly at 680, 720, and 740. The difference between a 700 and a 740 FICO can be 0.25%–0.5% on the rate. Bryan can model both scenarios to see if a small credit lift is worth waiting on.

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