Conventional Loan
Conventional Loans are the traditional mortgage, backed by Freddie Mac or Fannie Mae, but not by the U.S. federal government. They traditionally require 5% down, but recent changes only require 3% down for qualified applicants.
Conventional Loans are the most popular type of mortgage loan. Since conventional mortgage loans are not insured by the government like FHA or VA Loans, they have stricter credit standards. Some Conventional Loans have the option for down payments as low as 3% of the purchase price, but if you put down less than 20% you will have to add Private Mortgage Insurance (PMI) to your payment for a period of time. Click here for a video explaining PMI.
Who can benefit from a conventional loan?
Conventional loans are offered by private lending investors and are available in fixed and adjustable interest rates with varying terms, but in the current lending environment 15 and 30 fixed rate terms are the norm. As long as you can meet the down payment requirements for this loan type, it is a fantastic option for any home buyer.
Loan Program Details
- 5% minimum down payment requirement
- Maximum loan amount of $726,200
- Seller concessions are limited to 3-9% of sales price (call for details) insert link to video
- PMI (Private Mortgage Insurance) required over 80% Loan To Value (LTV).
- Additional options are available
We’ve made applying for a Conventional Loan easy. To start your loan application and get preapproved click here, to find a local loan officer click here.
