Kansas City · Kansas & Missouri
Conventional loans in Kansas City. Let's look at your options.
Your first home, next home, second home or investment property.
I'm Mike Baker, owner of The Rate Shop. I'll help you understand whether a conventional mortgage fits your situation, compare options across multiple lenders, and see what the numbers mean for your budget.
Prefer a quick conversation? Call or text me at 913-213-3335.
Start with the basics
What is a conventional loan?
A conventional mortgage isn't insured or guaranteed by a government agency. Many conventional loans follow guidelines set by Fannie Mae or Freddie Mac, including requirements for the borrower, property and loan amount.
I offer conventional financing for primary residences, second homes and investment properties. How you'll use the home helps determine the down payment and other requirements.
And yes, conventional loans can work for first-time homebuyers, too. You don't have to own a home already to explore this option.
A smaller down payment may be possible
Conventional options with as little as 3% down.
For qualified buyers, I offer HomeReady, Home Possible and HomeOne. Each has its own eligibility requirements. We'll check which options fit your income, homebuying history and the property you're buying.
HomeReady
Fannie Mae's low-down-payment option for eligible buyers. Income limits apply, and you don't have to be a first-time buyer.
HomeReady program detailsHome Possible
Freddie Mac's low-down-payment option for eligible buyers. Income limits apply; qualifying repeat buyers can also be eligible.
Home Possible program detailsHomeOne
A Freddie Mac option with no program income limit. For a purchase, at least one borrower must meet its first-time-homebuyer definition.
HomeOne program detailsThese 3% down options apply to eligible primary-home purchases, with mortgage insurance and other program requirements. Second homes and investment properties have different down-payment requirements.
Choose with the numbers in front of you
Conventional or FHA? Compare the costs and payment.
Credit score is usually where I start when comparing conventional and FHA. As credit improves, conventional often becomes a better fit. But your monthly debts compared with your income can determine which option works, even with a strong score. FHA may allow more room for that debt-to-income ratio.
Once we compare the costs and monthly payment, the better option is usually clear. If one saves money upfront but costs more each month, we'll talk through that trade-off together.
What will you need upfront?
We look beyond the down payment to closing costs, prepaid expenses and any funds needed to set up your escrow account. Then we consider how much you'd have left in savings.
What will you pay each month?
We'll compare principal, interest, property taxes, homeowners insurance and mortgage insurance when applicable, along with any HOA dues. That gives you a fuller picture than the interest rate alone.
Why the lender matters
The same loan type can come with different lender rules.
Some lenders add requirements beyond the standard Fannie Mae or Freddie Mac guidelines. You'll sometimes hear these called overlays.
Knowing those differences matters. I compare lender requirements alongside rates and closing costs, so we're looking at options that fit your situation. One lender's answer doesn't necessarily tell us what another can do.
A few common questions
PMI, credit and getting started.
Do I have to pay PMI with a conventional loan?
Borrower-paid private mortgage insurance is generally required with less than 20% down. With 20% down, it can typically be avoided. When PMI applies, we'll include its actual cost in your payment comparison.
Can conventional PMI be removed later?
Yes, when the applicable requirements are met. For many mortgages, you can request cancellation when the balance reaches 80% of the home's original value, subject to payment history and other conditions. Removal based on a higher current home value follows separate rules.
CFPB: PMI cancellation requirementsWhat credit score do I need?
Your score matters, but it doesn't tell us everything. I'll review your credit history, income, monthly debts, available funds and property plans against the loan and lender requirements. You don't need to decide whether you qualify before we talk.
Your next step
Let's find the loan that fits your plans.
Schedule a call so we have time for your questions. We'll discuss your budget, situation and timing, then decide together what makes sense next.
Call or text 913-213-3335 · Email Mike
Mike Baker · Individual NMLS #259076
The Rate Shop · Company NMLS #2554765 · Serving Kansas & Missouri