CONVENTIONAL loans in Kansas & Missouri
Conventional loans are the most common type of mortgage, accounting for nearly 70% of home loans. They offer competitive rates, flexible terms, and can be used to purchase a primary residence, second home, or investment property. At First State Bank Mortgage, our own staff of underwriters knows the guidelines and provides the flexibility needed for loan approval.
Why Choose a Conventional Loan?
Higher loan limits — Borrow up to $832,750 for a single-family residence under the 2026 conforming loan limit.
Flexible property types — Finance a primary residence, second home, or investment property.
Low down payment options — Down payments start at 5%, and eligible first-time homebuyers may put down as little as 3%.
In-house underwriting — Our own underwriters provide more flexibility for loan approval.
Benefits of a Conventional Loan
You Do Not Need 20% Down
Contrary to popular belief, a 20% down payment is not required to purchase a home with a conventional loan.
Gift Funds Accepted
Gifts can be used toward your down payment with proper documentation. Speak with Jim before moving any funds.
Lower Mortgage Insurance Costs
Private mortgage insurance (PMI) is now risk-based, which often makes it more affordable than many buyers expect.
Multiple PMI Options
First State Bank Mortgage offers at least five PMI options, which can mean significant savings on your payment and the total cost of your loan.
Choose the Right Conventional Loan Strategy
3–5% Down
Purchase sooner with a lower down payment and PMI that can typically be removed once you reach 20% equity.
20% Down
Avoid PMI entirely and lower your monthly payment from day one.
15-Year Term
Build equity faster and save on long-term interest.
Second Home or Investment Property
Use conventional financing for vacation homes and rental properties.
Why Work With Jim Yarrington?
28+ years of mortgage experience — Jim has guided Kansas City homeowners through purchases, refinances, and equity decisions for nearly three decades.
In-house underwriting — First State Bank Mortgage has its own staff of underwriters who know the guidelines, providing more flexibility and faster answers.
Personal guidance — Jim takes the time to understand each client's situation and explains every option clearly before you commit.
Local to Kansas City — Jim has called the Kansas City area home for nearly three decades and serves clients on both sides of the state line.
How the Conventional Loan Process Works
Consultation — Review your goals, budget, and down payment options with Jim.
Pre-approval — Verify your credit, income, and assets so you can shop with confidence.
Home search and offer — Find a home with your real estate agent and make an offer.
Appraisal — Confirm the home's value supports the purchase price.
Underwriting — Our in-house underwriters review and approve your loan.
Closing — Sign your documents and receive the keys to your new home.
Conventional Loan Requirements
Down payment — As little as 3% for eligible first-time buyers and 5% for other buyers.
Credit — Stronger credit generally qualifies for better pricing.
Income and debts — Lenders review your debt-to-income ratio to confirm affordability.
Mortgage insurance — Required with less than 20% down.
Gift documentation — Gift funds require a documented paper trail.
Common Conventional Loan Mistakes to Avoid
Assuming you need 20% down — Many buyers wait longer than necessary to purchase.
Moving gift funds too early — Talk with Jim before moving any money so the funds can be properly documented.
Not comparing PMI options — Different PMI structures can significantly change your payment.
Areas We Serve
Based in Overland Park, Jim serves homeowners and buyers throughout the Kansas City metro, including Johnson County, Olathe, Leawood, Lenexa, Shawnee, Prairie Village, Lee's Summit, and Kansas City, Missouri. First State Bank Mortgage lends in all 50 states, so contact Jim if your property is outside the metro.
Frequently Asked Questions
How much do I need to put down on a conventional loan?
Down payments can be as low as 5%, and eligible first-time homebuyers may put down as little as 3%. Restrictions apply.
What is the 2026 conventional loan limit?
The 2026 conforming loan limit for a single-family residence is $832,750 in most areas. Higher amounts may be available through jumbo financing.
When can I remove PMI?
PMI can typically be removed once you reach 20% equity, and it is automatically cancelled at 22% equity based on your original payment schedule.
Can I use gift funds for my down payment?
Yes. Gift funds are accepted with specific documentation, so speak with Jim before moving any money.
Can I use a conventional loan for an investment property?
Yes. Conventional loans can finance second homes and investment properties.
Related Loan Programs
Ready to explore your conventional loan options? Call Jim directly at 913-513-2924 or send him a message to get started.