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Conventional Mortgage

A conventional mortgage is a home loan neither guaranteed not insured by the federal government. Almost all conventional loans conform to the standards of Fannie Mae and Freddie Mac and are thus labeled “conforming” mortgages.

There are dozens of reasons why a conventional mortgage may be right for you. It depends largely on your unique situation. Here are some key points that may help with your decision.

  • Conventional loans come in 10-, 15-, 20-, 25- and 30-year fixed terms.
  • Do not rule out adjustable rate mortgage (ARM) options. These loans offer ultra-low rates for a period of 3, 5, 7 and 10-year fixed terms.
  • The overall cost of private mortgage insurance (PMI) is typically less than that of a government-backed loan with mortgage insurance (MI).
  • Avoid PMI by putting at least 20% down.
  • Lower closing costs than other loans like FHA, VA, or USDA.
  • Many sellers prefer to sell to people with conventional loans.
  • Flexible qualification terms.
  • Conventional loans are available for second home and investment properties.
  • The conforming loan limit for one-unit in most counties nationwide is $484,350. However, in high-cost areas, loan limits for conforming loans can be as high as $726,525.

Deciding on what loan type to use when purchasing a home can be confusing. Allow one of our licensed mortgage experts to assist you and get a quote with no obligation to proceed. Click below to get started with your pre-approval today.

Conventional Mortgage
Minimum FICO
Credit Score
620
Minimum
Down Payment
3% - 5%
Maximum
Loan To Value
97%*
Maximum
Debt To Income
45%*
Exceptions to 50%
Mortgage
Insurance
Yes
Years Since
Bankruptcy
4
Years Since
Foreclosure
7
Years Since
Short Sale
4
Special
Qualification
Requirements
None
Conventional Mortgage
Minimum FICO
Credit Score
:
620
Minimum
Down Payment
:
3% - 5%
Maximum
Loan To Value
:
97%*
Maximum
Debt To Income
:
45%*
Exceptions to 50%
Mortgage
Insurance
:
Yes
Years Since
Bankruptcy
:
4
Years Since
Foreclosure
:
7
Years Since
Short Sale
:
4
Special
Qualification
Requirements
:
None