Conventional Loans in Kansas City
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 $806,500, allowing flexibility for a wide range of properties.
These loans come in fixed-rate or adjustable-rate mortgage (ARM) options:
- 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 offer competitive conventional loans with no hidden fees, ensuring you get the best deal in the Kansas City market. Check out 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
To qualify for a conventional loan:
- Credit Score: Minimum 620, but higher scores (e.g., 740+) unlock better rates.
- Down Payment: 3% minimum for conforming loans; 5-10% for jumbo loans over the limit.
- Debt-to-Income Ratio (DTI): Typically 45% or lower.
- Employment and Income: Stable history with verifiable income.
- Property Type: Primary residences, second homes, or investment properties (with stricter terms).
Rates vary based on factors like credit history, loan amount, and market conditions. As of July 14, 2025, average 30-year fixed conventional rates in Kansas City hover around 6.5-7.0%. Contact us for a personalized quote—rates subject to change and based on individual qualifications.
Current Conventional Loan Rates in Kansas City
Here are sample rates from Metropolitan Mortgage as of July 14, 2025 (rates are estimates; actual rates may vary):
| Loan Type | Rate | APR | Points | Monthly Payment (on $300,000 loan) |
|---|---|---|---|---|
| 30-Year Fixed | 6.125% | 6.257% | 0 | $1,822 |
| 20-Year Fixed | 6.125% | 6.231% | 0 | $2,171 |
| 15-Year Fixed | 5.875% | 6.022% | 0 | $2,511 |
| 5-Year ARM | 6.125% | 7.015% | 1 | $1,822 (initial) |
*Assumptions: 740+ FICO score, 20% down payment. For the latest rates, visit our interest rates page.
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 (2025) | Up to $806,500 (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 (July 2025)
The Kansas City housing market remains a hot spot in 2025, ranked among the top 10 for growth with expected home value increases of 3.8% and price appreciation around 5.6%. Median home prices are around $320,000 (up 6.5% from last year) or $291,662 list price (up 4.2%), with inventory slowly increasing for a more balanced market—now with 2.3% more sellers than buyers. Competition is high but easing, with price cuts on some listings signaling opportunities for buyers in suburbs like Johnson County, driven by economic stability and low unemployment. With rising inventory and modest price growth, now is a great time to secure a conventional loan before rates fluctuate further.
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.
Frequently Asked Questions (FAQ)
What is the minimum down payment for a conventional loan in Kansas City?
As low as 3% for qualified buyers, though 20% avoids PMI.
How do conventional loan rates compare in 2025?
Current averages are 6.5-7.0% for 30-year fixed, but we offer competitive options starting at 6.125%.
Can I use a conventional loan for refinancing?
Yes! Refinance to lower rates, shorten terms, or cash out equity—perfect for Kansas City’s appreciating market.
What if my credit score is below 620?
We can explore alternatives like FHA loans or credit improvement strategies. See our credit tips blog.
How long does the approval process take?
With our faster closings, pre-approval in days and full closing in 21-30 days.
Ready to get started? Contact Metropolitan Mortgage today for expert advice on conventional loans in Kansas City. No obligation, just results!