620 Treeline RD., Kalispell, MT 59901
620 Treeline RD., Kalispell, MT 59901
A conventional loan is a mortgage that isn’t backed by a government agency like the FHA, VA, or USDA. Instead, it follows guidelines set by Fannie Mae and Freddie Mac — and for buyers with solid credit and steady income, it’s often the most flexible and cost-effective option available.
At Grizzly Mortgage, we work with multiple lenders to find the most competitive conventional loan rates in Montana. Whether you’re buying your first home in Kalispell, upgrading to something larger in Whitefish, or purchasing an investment property in the Flathead Valley, a conventional loan gives you options that government-backed programs simply don’t — including the ability to remove Private Mortgage Insurance once you’ve built enough equity.
Give us a call at 406-890-8464 or start your application today to see what you qualify for.
Conventional loans often have lower long-term costs compared to government-backed loans, especially once PMI is removed.
Choose from fixed-rate or adjustable-rate options with a variety of term lengths to match your financial goals.
Unlike FHA loans, Private Mortgage Insurance on a conventional loan can be cancelled once you reach 20% equity.
Conventional loans can be used for primary residences, second homes, and investment properties — giving you more flexibility.
A fixed-rate conventional loan gives you a stable interest rate and predictable monthly payment for the life of the loan. This is the most popular option for Montana buyers who plan to stay in their home long-term and want the security of knowing exactly what their payment will be every month.
An adjustable-rate conventional loan starts with a lower fixed rate for an initial period (typically 5, 7, or 10 years) before adjusting annually based on market conditions. This can be a smart choice if you plan to sell or refinance before the adjustment period begins.
Most conventional loans require a minimum credit score of 620, though you’ll typically qualify for better interest rates with a score of 740 or higher. As a mortgage broker, we work with multiple lenders and can help you find the best conventional loan option for your credit profile. If your score needs improvement, we’ll tell you honestly and help you understand your options.
Conventional loans can require as little as 3% down for qualified first-time buyers, though 5–20% is more common. Putting down less than 20% means you’ll need Private Mortgage Insurance (PMI), which adds to your monthly payment — but unlike FHA loans, you can have PMI removed once you reach 20% equity in your home. We’ll help you run the numbers to figure out the right down payment strategy for your situation.
Conforming conventional loans meet the loan amount limits set by the Federal Housing Finance Agency (FHFA) and follow Fannie Mae and Freddie Mac guidelines. Non-conforming loans — often called jumbo loans — exceed those limits. In Montana, conforming loan limits vary by county and are updated annually. If you’re buying a higher-value property, we’ll let you know whether you’re in conforming or jumbo territory and what that means for your rate and terms.
Yes — conventional loans are one of the few loan types that can be used for second homes and investment properties. Government-backed loans like FHA, VA, and USDA are generally limited to primary residences. If you’re purchasing a rental property or vacation home in the Flathead Valley, a conventional loan is likely your best option.
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20%. It protects the lender if you default on the loan. The good news is that PMI is not permanent — once you’ve built 20% equity in your home through payments or appreciation, you can request its removal. This is a key advantage over FHA loans, where mortgage insurance often stays for the life of the loan.
A conventional loan typically closes in 30–45 days from application, depending on how quickly documents are gathered and the complexity of the transaction. Grizzly Mortgage has a strong track record of getting loans funded on time — something both buyers and real estate agents in Kalispell appreciate in a competitive market.
Yes. Conventional loan limits (also called conforming loan limits) are set by the FHFA and can vary by county based on local home prices. They are updated annually. Flathead County, Missoula County, and Gallatin County may have different limits. Give us a call and we’ll tell you exactly what the current limit is in the area where you’re buying.
Absolutely. If you currently have an FHA or other government-backed loan, refinancing into a conventional loan can be a smart move — especially if you’ve built enough equity to eliminate mortgage insurance. It can also be a way to access better rates or change your loan term. We’ll run the numbers with you to see if refinancing makes financial sense for your situation.