Conventional and fixed-rate loans are the backbone of home financing in Colorado Springs. If you have solid credit and some money to put down, a conventional loan often beats government programs on cost — and a fixed rate locks your principal and interest for the life of the loan. 719 Lending is a local Colorado Springs lender, rated 4.9★ on Google. (NMLS #1601989, Equal Housing Lender.)
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What is a conventional loan?
A conventional loan is a mortgage that isn’t backed by a government agency like FHA or VA. Most conventional loans are conforming, meaning they follow Fannie Mae and Freddie Mac guidelines, including the annual conforming loan limit. For buyers with good credit, conventional financing usually offers the lowest total cost and the most flexibility.
Fixed-rate vs. adjustable-rate (ARM)
A fixed-rate mortgage keeps the same interest rate and the same principal-and-interest payment for the entire term (commonly 30, 20, or 15 years). It’s the most popular choice in Colorado Springs because it’s predictable. An adjustable-rate mortgage (ARM) starts with a lower fixed rate for a set period (say 5 or 7 years), then adjusts. An ARM can make sense if you plan to move or refinance before it adjusts. We’ll help you decide which fits your plans.
Conventional loan benefits
- As little as 3% down for eligible buyers (HomeReady and Home Possible programs).
- No upfront mortgage insurance, and PMI drops off automatically at 20% equity, unlike FHA.
- Competitive rates for strong credit on primary homes, second homes, and investment properties.
- Flexible terms — 30, 20, 15-year fixed, or an ARM.
- Above the conforming limit? See our jumbo loans.
Conventional loan requirements
- Typically a credit score of 620 or higher (the best rates go to higher scores).
- A down payment from 3% to 20% or more depending on the program and property.
- A manageable debt-to-income ratio and verifiable income.
- Private mortgage insurance (PMI) if you put less than 20% down — removable later.
Conventional vs. FHA: which is better in Colorado Springs?
If your credit is strong (roughly 680+) and you can put a little down, conventional usually wins because PMI is cheaper and falls off at 20% equity. If your credit is lower or you want the most flexible approval, FHA may be the better path. Veterans should always compare a $0-down VA loan first. We’ll run the numbers side by side.
The process in Colorado Springs
- Talk to a local expert — 15 minutes on your goals and budget.
- Get pre-approved — we verify income and credit and hand you a strong offer letter.
- Find your home — we coordinate with your agent.
- Close — on your timeline.
Why Colorado Springs chooses 719 Lending
Local, responsive, and we shop your loan to get the best fit. Rated 4.9★ on Google. 719 Lending, NMLS #1601989 — Equal Housing Lender. Read our reviews or compare every program on our loan options page.
Conventional loan FAQ
What credit score do I need for a conventional loan?
Usually 620 or higher, though the best rates go to scores in the 700s and up. Lower scores may do better with an FHA loan.
How much down payment do I need for a conventional loan?
As little as 3% for eligible buyers through HomeReady or Home Possible; 5% to 20% is common. Putting 20% down avoids PMI entirely.
Can I remove PMI from a conventional loan?
Yes. Unlike FHA, conventional PMI automatically ends once you reach 20% equity.
What is the conforming loan limit in Colorado Springs?
It’s set annually by the FHFA for El Paso County. Above that limit you’d use a jumbo loan. Ask us for the current figure.
719 Lending — NMLS #1601989. Equal Housing Lender. This is not a commitment to lend; all loans are subject to credit approval and property appraisal. Rates, terms, and limits are subject to change.