Conventional loans are the most widely used mortgage product in the country. They offer a range of term options and competitive pricing for borrowers with solid credit and stable income.
Conventional loans reward good credit with some of the most competitive rates available, especially for borrowers with scores above 700.
Put as little as 3% down as a first time buyer or 5% for most other purchases. A 20% down payment eliminates the need for private mortgage insurance entirely.
Conventional loans can be used for primary residences, second homes, and investment properties — something government backed loans do not always allow.
Conventional loans work well for a wide range of buyers, but they are best suited for borrowers with solid credit and stable income. Here is what to weigh.
Conventional financing is a strong fit for buyers and homeowners who meet standard qualification guidelines and want flexible options without government loan restrictions.
Borrowers with a solid credit history who want competitive rates and the widest range of loan term and property type options.
Homeowners selling their current home and purchasing their next one who want a straightforward loan without government program restrictions.
Buyers purchasing a second home or investment property, as conventional loans are one of the few options available for non primary residences.
Straight answers to the questions we hear most often.
A conventional loan is a mortgage not insured by a government agency. It follows guidelines set by Fannie Mae and Freddie Mac and is the most common loan type for home purchases and refinances.
Most conventional loans require a minimum credit score of 620, though a stronger score will give you access to better rates and terms.
As little as 3% down is possible for qualified first time buyers. Most borrowers put down 5% to 20% depending on their situation and goals.
Private mortgage insurance is required if your down payment is less than 20%, but it can be removed once you reach 20% equity. There is no upfront mortgage insurance premium like FHA requires.
Conventional loan limits are set annually by the Federal Housing Finance Agency and vary by county. Loans above the limit are considered jumbo loans and follow different guidelines.
