Loan Programs
Conventional Loans—flexible financing for many homebuyers
A conventional mortgage isn’t backed by the government. It can be a strong fit if you have solid credit, stable income, and want flexible options for down payment, property type, and term length.
What it is
How conventional loans work
Conventional loans are typically underwritten to Fannie Mae/Freddie Mac guidelines (conforming) or may exceed those limits (jumbo). Your rate and approval are driven by factors like credit score, down payment, debt-to-income ratio, and property details.
Conforming vs. jumbo
Conforming loans stay within county loan limits and follow standard guidelines. Jumbo loans exceed those limits and often require stronger qualifications.
Down payment options
Some programs allow as little as 3% down for qualified buyers. Larger down payments can reduce monthly payment and may improve pricing.
Mortgage insurance (PMI)
If you put less than 20% down, PMI is typically required. The good news: PMI can often be removed once you reach sufficient equity (subject to guidelines).
Rates & terms
Common terms include 30-year and 15-year fixed, plus adjustable-rate options. The right term balances payment comfort and long-term interest cost.
Why buyers choose conventional
Key advantages (when you qualify)
Conventional financing can be a great match for buyers who want competitive pricing and flexibility—especially with strong credit and a plan for down payment.
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Flexible property types
Often works well for primary homes, second homes, and some investment scenarios (guidelines vary).
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PMI can be removable
Unlike some programs, PMI may be removed once you reach the required equity and meet servicing rules.
Eligibility basics
Conventional eligibility—what underwriters look for
Exact requirements vary by scenario, but these are the common pillars that drive approval and pricing.
Credit & payment history
Credit score, recent late payments, and overall credit profile help determine eligibility and interest rate.
Down payment & reserves
Down payment affects PMI and pricing. Some scenarios also require reserves (funds available after closing).
Debt-to-income ratio (DTI)
Your monthly debts compared to income. Lower DTI generally improves approval odds and pricing.
Property & appraisal
The home must appraise and meet condition requirements. Property type and occupancy also matter.