21 Trafford Park Dr

Coventry, RI 02816

(401) 443-9571

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Conventional Loans:

Flexible Financing Solutions

Discover how our conventional loan options can help you achieve your homeownership goals with competitive rates and flexible terms.

Connect with Top RI Mortgage Brokers

Payment Calculator

Connect with Top RI Mortgage Brokers

Payment Calculator

Quick Pre-Qualification

Get pre-qualified online in just minutes and understand your budget before house hunting begins.

Competitive Rates

Conventional loans typically offer lower rates for qualified buyers and flexible down payment options as low as 3%.

Streamlined Process

Enjoy a hassle-free mortgage experience with our user-friendly platform and personalized support from local experts.

Various Property Types

Primary, secondary, and investment properties

What is a Conventional Loan?

A conventional loan is a type of mortgage not backed by a government agency like the FHA, VA, or USDA. These loans are ideal for creditworthy borrowers with steady income and the ability to make a down payment. Conventional loans offer flexibility in loan structure, property types, and repayment terms—making them a preferred choice for many homebuyers in Rhode Island.

Conventional Loan Requirements

Understanding the qualification criteria for conventional loans can help you prepare for the application process.

Conforming Loans

Conforming loans adhere to the lending standards set by Fannie Mae and Freddie Mac, including county-specific loan limits.

  • Meet 2025 Rhode Island conforming loan limits
  • Potential for lower interest rates and PMI removal at 20% equity
  • Streamlined approval for borrowers with strong credit profiles

Jumbo Loans

If your property exceeds the conforming loan limits, a jumbo loan may be the solution. These loans are designed for high-value homes or luxury real estate in areas like Newport or East Greenwich.

  • Borrow above standard limits
  • Requires higher credit scores, larger down payments, and low debt-to-income (DTI)
  • Great for buyers of high-end properties in Rhode Island

Fixed & Adjustable Rates

Choose the repayment structure that fits your financial goals:

  • Fixed-Rate Mortgages – Predictable monthly payments for 15, 20, or 30 years
  • Adjustable-Rate Mortgages (ARMs) – Lower introductory rates for 5, 7, or 10 years before adjusting annually (5/1, 7/1, 10/1 ARMs)

Financial Requirements

Credit Score

Most lenders require a minimum credit score of 620, though borrowers with scores above 740 usually qualify for better interest rates and more favorable terms.

Down Payment

Conventional loans typically require a down payment of 5% to 20%, but first-time buyers may qualify with as little as 3% down. Putting down 20% or more helps avoid private mortgage insurance (PMI).

Debt-to-Income Ratio (DTI)

Lenders generally prefer a Debt-to-Income ratio of 43% or lower, though some may accept up to 50% with strong compensating factors like high credit or cash reserves.

Cash Reserves

Borrowers are often expected to have 2–6 months’ worth of mortgage payments saved in liquid assets to cover emergencies or income disruption.

Documentation Needed

Proof of Income

Lenders will ask for recent pay stubs, W-2s, and tax returns from the past two years to verify your income and ensure it’s consistent and sufficient to handle a mortgage.

Employment Verification

A stable employment history, typically at least two years in the same field, is usually required to demonstrate financial reliability and income stability.

Asset Documentation

You’ll need to provide bank statements and details of investment or retirement accounts to confirm you have the necessary funds for your down payment, closing costs, and reserves.

Credit History

Lenders review your credit report to evaluate how you've managed previous debts. They’ll look at payment history, credit usage, and existing obligations to determine your risk profile.

Private Mortgage Insurance (PMI)

If your down payment is less than 20%, you’ll likely need PMI, which protects the lender if you default. PMI typically ranges from 0.3% to 1.5% of your loan amount annually and can be removed once you reach 20% home equity.

Conventional Loan Payment Calculator

Estimate your monthly conventional mortgage payment based on your loan amount, interest rate, and term.

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Benefits of Conventional Loans

Conventional loans offer several advantages that make them an attractive option for many homebuyers.

  • Competitive Rates

Conventional loans often offer lower rates than government-backed options like FHA or USDA—particularly for borrowers with credit scores above 740.

  • Flexible Loan Terms

Choose from 15-, 20-, or 30-year terms and select between fixed or adjustable-rate mortgages (ARMs) to match your financial goals and homeownership timeline.

  • Wide Property Eligibility

Conventional financing is available for primary residences, second homes, and investment properties, making it ideal for both homeowners and real estate investors in Rhode Island.

  • Faster Approval & Closing

With fewer bureaucratic steps than government-insured loans, conventional loans often have shorter processing times, allowing you to close more quickly.

  • No Upfront Funding Fee

Unlike VA or USDA loans, conventional loans have no upfront guarantee or funding fee, reducing your out-of-pocket costs at closing.

  • Cancellable PMI

If your down payment is under 20%, you’ll pay Private Mortgage Insurance (PMI)—but once you hit 20% equity, you can request to remove PMI, helping lower your monthly payments long term.

Why Choose Us?

RI Mortgage Brokers is more than connecting you to brokers–we are your neighbors in the state of Rhode Island. All fully licensed and well invested in our local communities, we provide trusted, regulatory-compliant advice. We keep the pricing transparent and the underwriting process speedy, and offer our support in person, so you can purchase the home of your dreams with peace of mind.

License & Regulated

RI Mortgage Brokers operates under full Rhode Island and federal licensing. Therefore, every conventional loan is handled legally and transparently. You can trust that we follow all rules, uphold compliance, and keep your best interests front and center.

Competitive Mortgage Rates

We search out the best conventional mortgage rates available in Rhode Island. This gives you the advantage of reduced overall cost in the long run--without you having to shop for any number of quotations.

Local market Expertise

From Providence to Warwick to Newport, we know Rhode Island’s neighborhoods inside and out. Consequently, Conventional Loans Broker match you with the right loan products based on pricing trends and lending patterns specific to your area.

Expert Guidance

Our team simplifies conventional mortgage steps—explaining loan terms, down payment options, and closing timelines in easy-to-understand terms. Ultimately, we reduce stress and prevent surprises along your homebuying journey.

Higher Approval

Although conventional loans may be more demanding, with us, you have a stronger advantage. We position your application strategically, point out strengths, and align it with broker expectations, maximising your approval, even with smaller savings.

Fast Application Process

We provide a smooth process to apply for your conventional loan that uses modern tools and local expertise. That also means quicker pre-approval, less paperwork, and efficient closings. So you get your home quicker, and without any unnecessary delays.

2,500+

Local Buyers Served

99.99%

Client Satisfaction

4.9★

Average Review

24/5

Personalized Support

Testimonials

What Our Rhode Island Neighbors Say

Real stories from real Rhode Islanders who found their perfect mortgage solution with us.

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Why Choose Us?

Competitive Rates

We shop multiple lenders to find you the best rates and terms for your situation.

Fast Closings

Our streamlined process helps you close on your loan quickly and efficiently.

Expert Guidance

Our experienced loan officers provide personalized advice throughout the process.

We’re available Monday-Friday from 9AM-5PM and Saturdays by appointment. Evening appointments are also available upon request.

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FAQs

Find answers to common questions about conventional loans and the mortgage process.

Conventional loans are not insured by the government and are offered through private lenders. Government-backed loans (like FHA, VA, or USDA) are insured by federal agencies and may offer more lenient requirements but often come with extra fees and restrictions.

You can qualify with as little as 3% down if you’re a first-time buyer with good credit. Most buyers put down 5% to 20% depending on the loan and lender.

Most lenders require a minimum credit score of 620, but higher scores (above 740) can help you qualify for better interest rates and lower PMI costs.

PMI is a monthly insurance fee required when your down payment is less than 20%. It protects the lender if you default but can be canceled once you reach 20% equity in your home.

A fixed-rate mortgage keeps your interest rate the same for the life of the loan, offering stability. An adjustable-rate mortgage (ARM) typically starts with a lower rate that can change over time after an initial fixed period.

On average, it takes about 25 to 30 days to close, but timing can vary based on the lender, appraisal schedule, and how quickly documents are submitted.