Down payment of at least 5% typically required

What are conventional loans?

Conventional loans are mortgage loans that meet the lending guidelines that have been set by Fannie Mae or Freddie Mac (unlike FHA, VA, and USDA loans which are backed by the government). Typically, conventional loans have better rates, terms, and lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.

Most common types of conventional loans

Fixed Rate Mortgages: Your rate and payment never change. We offer custom terms up to 30 years. Loans with shorter terms benefit from lower rates so that you can pay off your loan faster and pay less interest.

Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.

What are the conventional down payment requirements?

For purchase transactions, conventional loans typically require the home-buyer to put down at least 5% - 20% of the purchase price of the home. We also offer several first-time homebuyer loan products that allow a 3% down payment, as long as certain income and area requirements are met.

What types of properties are eligible?

Most conventional loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can also be used to finance a primary residence, second home and investment property.