Conventional Home Loans in Kansas City, MO
Welcome to Metropolitan Mortgage, your trusted direct mortgage lender and broker serving the Kansas City area. Whether you’re a first-time homebuyer exploring neighborhoods like Overland Park or Lee’s Summit, or a refinancer looking to capitalize on current rates, we specialize in conventional loans tailored to your needs. With lower rates, faster closings, no origination fees, special programs for first-time buyers, and strong local partnerships, we make homeownership achievable and affordable. Down payments start as low as 3%, and our team provides personalized guidance every step of the way.
Apply Now or get a free rate quote today! For more on our full range of mortgage options, explore our site.
What Are Conventional Loans?
Conventional loans are mortgage products not insured by the government, unlike FHA or VA loans. They are backed by private lenders and conform to guidelines set by Fannie Mae and Freddie Mac. In 2025, the conforming loan limit for a single-family home in most areas, including Kansas City, is up to $819,000, allowing flexibility for a wide range of properties.
- Fixed-Rate: Predictable payments over 15, 20, or 30 years.
- Adjustable-Rate: Lower initial rates that adjust after an introductory period (e.g., 5/1 or 7/1 ARM).
At Metropolitan Mortgage, we are your trusted conventional loan lender, offering loans with no hidden fees to ensure you get the best deal in the Kansas City market. Explore our VA loan options if you’re eligible for government-backed alternatives
Benefits of Conventional Loans with Metropolitan Mortgage
- Lower Rates and Costs: Enjoy rates as low as 6.125% for a 30-year fixed (APR 6.257%), depending on credit and down payment. Our no-fee structure saves you thousands compared to competitors.
- Faster Closings: Our streamlined process closes loans in as little as 21 days, perfect for Kansas City’s competitive market.
- Flexible Down Payments: As low as 3% for qualified buyers, ideal for first-time homebuyers.
- Special Programs: First-time buyer incentives, including closing cost assistance and local partnerships with Kansas City realtors for seamless transactions.
- No Private Mortgage Insurance (PMI) Long-Term: Avoid PMI with 20% down, or cancel it once you reach 20% equity—unlike some government-backed loans.
- Refinancing Options: Lower your payments or cash out equity with our expert guidance. Visit our refinancing page for details.
Eligibility Requirements for Conventional Loans in Kansas City
Conventional loans in Kansas City remain the go‑to choice for homebuyers with solid credit and stable income. Unlike FHA or VA loans, conventional loans Kansas City are backed by private lenders and follow guidelines from Fannie Mae and Freddie Mac. Below are the core conventional loan requirements Kansas City lenders use in 2025.
- Credit Score: Minimum FICO® of 620. Scores of 680+ unlock the best rates on conventional loans in Kansas City. First‑time buyers with 640+ may qualify for 3% down via HomeReady® or Home Possible® programs.
- Down Payment: As low as 3% for qualified borrowers—perfect for first‑time homebuyers in Overland Park, Lee’s Summit, or downtown KC. Down payments under 20% trigger Private Mortgage Insurance (PMI), which drops off automatically at 20% equity.
- Debt‑to‑Income (DTI) Ratio: Lenders target ≤36% front‑end DTI, but many Kansas City conventional mortgage programs accept up to 43% (or 50% with strong reserves, high credit, or automated underwriting approval).
- Income & Employment: At least 2 years of verifiable income via W‑2s, recent pay stubs, and federal tax returns (1040s). Self‑employed borrowers need 2 years of 1099s or business returns. Stable employment in the Kansas City metro boosts approval odds.
- Loan Limits (2026 FHFA): Conforming limit for a single‑family home in the Kansas City area is $819,000. Loans above this are “jumbo” and require stricter conventional loan requirements Kansas City (typically 10‑20% down, 700+ FICO).
- Property Types: Eligible for primary residences, second homes, and investment properties—including single‑family homes, condos, townhomes, and 2‑4 unit buildings (great for KC duplex investors).
Ready to see if you qualify for a conventional home loan in KC? Use our mortgage calculator or apply online for a free rate quote in minutes.
Current Conventional Loan Rates in Kansas City
Here are sample rates from Metropolitan Mortgage last updated: as of November 14, 2025 (rates are estimates; actual rates may vary):
| TERM | Example Payment* | |||
|---|---|---|---|---|
| 30-Year Fixed | 360 payments of $1,797 at 5.990% | |||
| 20-Year Fixed | 240 payments of $2,085 at 5.625% | |||
| 15-Year Fixed | 180 payments of $2,431 at 5.375% | |||
| 7 Yr ARM | Initial: $1,775 (adjusts after 7 years) | |||
| 5 Yr ARM | Initial: $1,751 (adjusts after 5 years) | |||
*Assumptions: 740+ FICO score, 20% down payment. For the latest rates, visit our interest rates page.
Metropolitan Mortgage Reviews: Conventional Loans Kansas City
Real reviews from real people — see why they switched to Metropolitan Mortgage and never looked back.
"Great people to work with. Kind and helpful. "
Google
"We can’t say enough good things about Rick Woodruff! "
Google
"Rick was awesome. Always available with anything needed. Would definitely recommend Rick!!"
Google
"Competitive rate, prompt responses, honest and sober advice, and no issues or delays leading up to the close of our home.
Google
Comparison: Conventional Loans vs. FHA Loans
Choosing between a conventional loan and an FHA loan? Here’s a side-by-side comparison based on 2025 guidelines:
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
| Backing | Private lenders (Fannie Mae/Freddie Mac) | Government (Federal Housing Administration) |
| Down Payment | As low as 3% | As low as 3.5% |
| Credit Score Minimum | 620 | 580 (with 3.5% down); 500 (with 10% down) |
| Loan Limits (2026) | Up to $819,000 (conforming) | Up to $524,225 (low-cost areas like Kansas City); $1,209,750 (high-cost) |
| Mortgage Insurance | PMI if <20% down; removable at 20% equity | MIP required (upfront 1.75% + annual); often lifelong |
| Interest Rates | Often lower for strong credit | Slightly higher, but easier qualification |
| Property Use | Primary, secondary, or investment | Primary residence only |
| Best For | Borrowers with good credit and down payment | First-time buyers with lower credit/down payment |
Conventional loans are ideal if you have solid credit and want to avoid lifelong insurance premiums, while FHA loans suit those needing more lenient qualifications. If interested, see our FHA loan page.
Kansas City Housing Market Trends (November 2025 Update)
The Kansas City housing market continues to rank among the top 10 U.S. markets for growth in 2025, with home values projected to appreciate by 3.8–5.6% through the year. Median sale prices stand at approximately $285,000 (down 1.5% year-over-year) in Kansas City, MO, and $214,000 (down 4.2%) in Kansas City, KS, reflecting a slight cooling amid broader affordability pressures. Median list prices hover around $400,000 (up modestly from mid-year figures), with inventory up 16–20% year-to-date, leading to a more balanced market at about 2.1 months of supply. Competition is easing, with homes selling in 21–32 days and price reductions on roughly 20% of listings, opening doors for buyers in high-demand suburbs like Johnson County (median value $413,000, up 1.8%) and Lee’s Summit. This stability is bolstered by a resilient economy and unemployment rate holding steady near 4%. As inventory grows and price momentum softens, now presents a prime window to lock in a conventional loan before potential year-end rate fluctuations.
Mortgage Calculator
Use our embedded calculator to estimate your monthly payments. Input your loan amount, interest rate, term, and down payment for instant results.
Or visit our site for a custom tool on the rates page.
Ready to get started? Contact Metropolitan Mortgage today for expert advice on conventional loans in Kansas City. No obligation, just results!
Frequently Asked Questions (FAQ)
As low as 3% for qualified buyers, though 20% avoids PMI.
Current averages are 6.0-6.5% for 30-year fixed, but we offer competitive options starting at 5.99%.
Yes! Refinance to lower rates, shorten terms, or cash out equity—perfect for Kansas City’s appreciating market.
We can explore alternatives like FHA loans or credit improvement strategies. See our credit tips blog.
With our faster closings, pre-approval in days and full closing in 21-30 days.