Northern Michigan Mortgage Lender | Kirby and Angie | Arch Mortgage - North

Conventional Home Loans in Northern Michigan

What Is a Conventional Loan?

Conventional mortgages are the most popular loan option in Michigan. At Arch Mortgage North, we help you qualify for financing with as little as 3% down, depending on your income and credit. Whether you’re buying your first home, upgrading to your dream home, or refinancing, our team makes the process smooth, transparent, and fast.

Benefits of a Conventional Loan

✅ Low down payment – as little as 3% for first-time buyers
✅ Flexible terms – 10, 15, 20, or 30 years
✅ No upfront mortgage insurance – unlike FHA loans
✅ Private Mortgage Insurance (PMI) that can be removed once you reach 20% equity
✅ Broad property eligibility – single-family, condos, and more
✅ Competitive rates that we shop across lenders to find your best fit

Who Qualifies (Credit, DTI, Down Payment)
To qualify for a conventional mortgage, most lenders look for a credit score of 620 or higher, though stronger scores often mean better rates and lower costs. Your debt-to-income ratio (DTI)—the percentage of your monthly income that goes toward debt payments—generally needs to fall below 45%, though exceptions can be made for well-qualified borrowers. Conventional loans also require a minimum down payment of 3% for first-time buyers, while repeat buyers usually bring at least 5%–20% down depending on their goals. The more you can put down, the lower your payment and the sooner you can eliminate private mortgage insurance (PMI).
3% Down vs 5% vs 20% (PMI explained)
Conventional loans give buyers flexibility when it comes to down payments. First-time buyers may qualify with as little as 3% down, making homeownership more accessible with a smaller upfront investment. A 5% down payment is a common choice for repeat buyers or those who want a little more equity from the start. When you put less than 20% down, lenders require Private Mortgage Insurance (PMI), which is an added monthly cost that protects the lender until you build enough equity. The good news is, unlike FHA loans, PMI on a conventional mortgage can be canceled once you reach 20% equity—or it drops off automatically at 22%—which helps lower your payment over time. For buyers who can put 20% or more down, there’s no PMI at all, giving you the lowest possible monthly cost.
Example Payments & Scenarios
Documents Needed & Timeline
Pre-Approval Stage
To get started, we’ll need:
- Government-issued photo ID
- Most recent pay stub
- Last 2 years of W-2s from all employers
Under Contract
Once you’ve found your home and an offer is accepted, we’ll collect:
- Updated pay stubs covering the most recent 30 days
- 2 months of complete bank statements (all pages, no screenshots)
- Homeowners insurance quote
- Statements for any additional assets (401k, retirement, etc.)
Your real estate agent will also provide your purchase agreement and earnest money receipt. After that, we’ll send your loan disclosures electronically for e-signature.
Appraisal & Processing
Once disclosures are signed, you’ll receive a secure link to pay for the appraisal. At the same time, you should upload any remaining documents so we can move your file into initial underwriting quickly.
Underwriting & Closing
Underwriting will issue a conditional approval with any final documentation requests. Once those conditions are met, your loan is cleared to close and we’ll schedule your closing date.
Get Pre-Approved (Fast)
Getting pre-approved is the first step toward homeownership—and we make it fast and simple. With just a few pieces of information, we can review your income, credit, and assets to let you know exactly how much you qualify for. Our secure online application takes only a few minutes, and once submitted, you’ll have a clear picture of your buying power and can start shopping for homes with confidence. Pre-approval also strengthens your offer with sellers, showing them you’re serious and ready to close.

Down Payment %	Down Payment	Loan Amount	Monthly P&I*	Est. PMI	Total Est. Payment*
5%	$12,500	$237,500	$1,501.16	$98.96	$1,600.12
10%	$25,000	$225,000	$1,422.15	$93.75	$1,515.90
20%	$50,000	$200,000	$1,264.14	$0	$1,264.14

*Estimated principal & interest (30-year fixed, 6.5%) with sample PMI at 0.5% annually. Taxes and insurance not included. PMI drops off at ~20% equity.

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Your Trusted Northern Michigan Mortgage TEAM | Kirby and Angie

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Serving All of Michigan with Offices:

ARCH MORTGAGE NORTH - 434 E Front Street, Traverse City, MI 49686

ARCH MORTGAGE NORTH - Manton Office - 113 W Main St, Manton, MI 49663

ARCH MORTGAGE NORTH - Cadillac Office - 124 S Mitchell St, Cadillac, MI 49601

ARCH MORTGAGE NORTH - Lake City Office - 200 Main St Suite A, Lake City, MI 49651

ARCH MORTGAGE NORTH - Manistee Office - 327 1st St, Manistee, MI 49660

ARCH MORTGAGE NORTH - Virtual Office 616-581-6123

Senior Mortgage Loan Officers:

Kirby Slocum 231-709-3136

Angie Anderson 616-581-6123

Email Kirby Slocum

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Northern Michigan Mortgage Lender | Kirby and Angie | Arch Mortgage - North

Conventional Home Loans in Northern Michigan

What Is a Conventional Loan?

Who Qualifies (Credit, DTI, Down Payment)

3% Down vs 5% vs 20% (PMI explained)

Example Payments & Scenarios

Documents Needed & Timeline

Get Pre-Approved (Fast)

Follow us on Social Media

Your Trusted Northern Michigan Mortgage TEAM | Kirby and Angie