Local Mortgage Guide

Conventional Loans in Bristol, VA: Your Complete 2025 Guide

Last Updated: Nov 25, 2025 Reading Time: 19 minutes

Conventional loans bristol va offer the most flexible financing option for local homebuyers—no location restrictions, no income limits, and mortgage insurance that actually cancels. If you have good credit (680+) and can manage a 3 down payment bristol va or more, conventional financing often delivers the best long-term value in Bristol's affordable housing market.

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Quick Bristol Conventional Facts

Min Down Payment
3% - 20%
3 down payment bristol va
Credit Score
620+
680+ Recommended
Current Rate
6.28% - 6.39%
best mortgage rates bristol va
Mortgage Ins.
Cancels
pmi removal bristol va
Loan Limit
$806,500
Washington County
Closing Costs
2% - 5%
Seller can pay 3-6%

What Is a Conventional Loan?

A bristol virginia conventional loan is a mortgage not insured or guaranteed by the federal government (unlike FHA, VA, or USDA). Instead, it follows guidelines set by Fannie Mae and Freddie Mac. It is the standard for borrowers with good credit.

Why Conventional Works in Bristol

Affordable 20% Down

With Bristol's median prices of $191k-$268k, a 20 down payment bristol virginia is $38k-$54k. This eliminates PMI immediately—something much harder to do in expensive markets like Northern VA where 20% is $120k+.

Universal Eligibility

bristol va home loans using conventional financing work anywhere—downtown, suburbs, or rural Washington County. No income limits apply.

Credit Score Rewards

If you have a good credit mortgage bristol va profile (680+), you get rewarded with lower interest rates and cheaper PMI than FHA.

PMI Cancellation

Unlike FHA's lifetime insurance, pmi removal bristol va happens automatically at 22% equity (78% LTV).

Current Conventional Rates in Bristol (Nov 2025)

Conventional rates are highly sensitive to credit scores. Borrowers with 740+ scores get the best conventional rates bristol va, while those under 640 see significant markups.

Credit ScoreRate RangeMonthly P&I ($200k Loan)
760-8506.15% - 6.25%$1,219
700-7596.28% - 6.40%$1,235
680-6996.45% - 6.60%$1,260
660-6796.70% - 6.90%$1,291
620-6397.20% - 7.50%$1,363

*Rates are estimates for a 30-year fixed loan. Your actual rate will vary by lender.

Conventional Loan Requirements Bristol VA

1. Credit Score

While 620 is the minimum, 680 credit score bristol va mortgage is the practical minimum for competitive pricing.

  • 3% Down: Needs 680+ typically.
  • 5-15% Down: Needs 660+ for decent PMI rates.
  • 20% Down: 620+ is acceptable since no PMI.
  • Best Terms: 740+ score.

Waiting Period: 4 years after Chapter 7 Bankruptcy, 7 years after Foreclosure.

2. Debt-to-Income (DTI)

Strictly enforced at 43% (sometimes 50% with high reserves).

Bristol Example ($5,000/mo Income)

  • Gross Income: $5,000
  • Debts (Car/Student Loan): -$450
  • Max Mortgage Payment: ~$1,700

3. Loan Limits

conventional loan limits bristol va (Washington County) match the national conforming limit.

$806,500

Since Bristol median prices are under $270k, limits are rarely an issue.

Down Payment Options in Bristol

3%

First-Time Buyer

$6,000 on $200k

5%

Standard

$10,000 on $200k

10%

Lower PMI

$20,000 on $200k

20%

No PMI

$40,000 on $200k

Sources: Personal savings, gift funds (100% allowed), 401(k) loans, or sale of assets. Cash savings is the most common source for good credit home loan bristol va applicants.

Private Mortgage Insurance (PMI) Deep Dive

If you put less than 20% down, you pay PMI. The cost varies wildly based on credit score.

Monthly PMI Cost on $200,000 Bristol Home

Credit Score5% Down ($10k)10% Down ($20k)15% Down ($30k)
760+$79/mo$68/mo$32/mo
720-759$103/mo$90/mo$45/mo
680-719$135/mo$113/mo$62/mo
640-679$182/mo$150/mo$85/mo
620-639$238/mo$195/mo$110/mo

How to Remove PMI

  • Automatic: Cancels at 78% LTV (22% equity). Typically 8-10 years.
  • Requested: Ask for removal at 80% LTV (20% equity). Needs appraisal.
  • Refinance: Refinance to a new loan once you have 20% equity.

Bristol Conventional Closing Costs

Expect to pay 2-5% of the purchase price. On a $200,000 home, that is $5,000 - $10,000.

Breakdown ($200k Home)

  • Lender Fees: $1,500 - $3,000
  • Appraisal: $400 - $700
  • Title Work: $800 - $1,500
  • Prepaids (Tax/Ins): $2,000 - $4,000
  • TOTAL: $5,000 - $10,000

How to Lower Costs

  • Shop Lenders: Fees vary by thousands.
  • Seller Concessions: Ask seller to pay 3% ($6,000). Covers most costs!
  • Lender Credits: Accept slightly higher rate for credit.
  • Close Late in Month: Reduces prepaid interest.

Application Process Step-by-Step

1

1. Credit & Budget

2-4 Weeks Before

Check score (680+ target). Calculate DTI.

2

2. Pre-Approval

3-7 Days

Contact conventional loan lenders bristol va. Get letter.

3

3. House Hunt

Varies

Focus on $175k-$268k Bristol homes.

4

4. Make Offer

1-3 Days

Include financing contingency. Ask for concessions.

5

5. Appraisal

1 Week

Lender confirms value. If low, renegotiate.

6

6. Underwriting

2-3 Weeks

Verification of assets, income, title.

7

7. Clear to Close

2-5 Days

Final CD review. Wire funds.

8

8. Closing

Day 30-45

Sign and get keys!

Conventional vs. Other Loans

Conventional or FHA Bristol VA?

Conventional

  • • Best for 680+ credit
  • • PMI cancels later
  • • 3-20% down

FHA

  • • Best for <680 credit
  • • Permanent MI
  • • 3.5% down

Verdict: Conventional wins if you have good credit and plan to keep the home 7+ years.

Conventional vs. VA

For military buyers, VA is almost always superior due to $0 down and no PMI. Conventional is for civilians or those preserving VA entitlement.

Refinancing to Conventional

Already have a home in Bristol? refinance to conventional bristol va is a smart move to remove FHA mortgage insurance. Learn more in our Bristol refinance guide.

The Strategy

  1. Buy with FHA (3.5% down).
  2. Pay down loan & let home appreciate.
  3. Reach 20% Equity (80% LTV).
  4. Refinance to Conventional.
  5. Eliminate MI payment ($100+/mo savings).

Bristol Conventional FAQs

What credit score do I need?

620 minimum. 680+ is recommended for affordable PMI. 740+ gets best rates.

Do I need 20% down?

No! You can put down 3% (first-time) or 5%. 20% just avoids PMI.

How much are closing costs?

2-5% of price ($5k-$10k). You can ask the seller to pay up to 3%.

Is Conventional better than FHA?

If you have 680+ credit, usually yes, because PMI is cheaper and temporary.

Can I buy a condo?

Yes, conventional is great for Bristol condos and townhomes.

How long to close?

30-45 days typically.

Get Your Bristol Conventional Rate

See if you qualify for a conventional loan today. Connect with lenders who know the Bristol market.

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Last updated: November 25, 2025

Disclaimer: This guide provides general information about conventional loans in Bristol, Virginia. Loan requirements, rates, and program details change frequently. This website generates leads for mortgage lenders.