Conventional Loans
Conventional Loans
A conventional mortgage is a popular home loan option that follows guidelines set by Fannie Mae and Freddie Mac. These loans offer flexibility with both fixed-rate and adjustable-rate options, making them a great fit for many types of buyers.
Most borrowers qualify with a minimum credit score of 620 and a down payment as low as 5%. First-time homebuyers may be eligible for programs requiring just 3% down. Seller contributions are allowed and can cover up to 3% of the purchase price toward closing costs, helping reduce out-of-pocket expenses.
Why Choose a Conventional Loan?
- Lower monthly mortgage insurance compared to FHA (and it can be removed once you reach 20% equity)
- Competitive interest rates for well-qualified buyers
- Higher loan limits than government-backed programs in many areas
- More flexible property types, including primary homes, second homes, and investment propertie
- No upfront mortgage insurance fee
- Ideal for buyers with strong credit and stable income
- Conventional loans are a great option for buyers looking for long-term savings, flexibility, and competitive terms—especially if you’re planning and building equity quickly.
Conventional Loan Comparison Graph
