Conventional Mortgage Planning in Michigan

By Samantha Shelton, Broker Owner & Mortgage Loan Originator at Align Lending (NMLS #2041154) · Updated August 2026

Quick answer

Conventional financing is not government-insured and follows agency guidelines. Down payment flexibility, mortgage insurance that can end once certain equity conditions are met, and a wide range of term options make it a common comparison point. Whether it fits better than an insured structure depends on your down payment, timeline and how long you expect to keep the loan.

Samantha Shelton, Broker Owner at Align Lending

Samantha's Take

Samantha Shelton · Broker Owner & Mortgage Loan Originator · NMLS #1647301

The comparison people skip

A lot of buyers assume conventional means 20% down. It doesn't have to. I've had clients who were planning around a completely different structure simply because nobody showed them the conventional version of the same scenario.

Why this matters

The mortgage insurance rules differ from insured programs, which changes the long-run comparison.

Term flexibility lets you shape the payment-versus-total-cost tradeoff deliberately.

Agency guidelines evolve, so a current comparison beats a remembered one.

What changes the answer

Down payment level: Drives whether mortgage insurance is part of the structure and at what level.
Term selection: Shorter terms change the monthly payment and the total interest picture.
Property use: Primary, second home and investment properties are treated differently.
Credit profile: Reviewed through a licensed application; affects available structures.

Try it with your numbers

Model down payment levels and terms to see how the payment and cash picture move.

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Common questions

Do I need 20% down?: No. Lower down payment options exist; mortgage insurance may be part of the structure.
Can mortgage insurance be removed later?: Conventional mortgage insurance can end when specific equity and servicing conditions are met.
Which is better, FHA or conventional?: Neither is universally better. Compare both against your priorities and timeline.

Next step

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