Conventional Home Loans
Overseen by the U.S. Department of Housing and Urban Development. Built for buyers who have steady income but not a large deposit — or a credit history with a few marks on it.
Conventional Home Loans
Everything the programme does, grouped so you can find the part you care about.Anything here raise a question? That is what the phone is for.
Far less than the twenty percent most people assume. The exact minimum depends on the property type and whether you are a first-time buyer.
PMI will be added to your payment if you put down less than 20%. Unlike FHA's insurance, it is not permanent — it comes off once you reach twenty percent equity, whether through paying down the balance or the property appreciating.
Under ten percent down, sellers can contribute up to three percent of the price towards your closing costs. That allowance rises with a larger down payment.
FHA permits up to six percent, which is worth weighing if the seller is paying costs.
Interest rates for conventional loans are very much credit score driven — the higher your score, the lower the rate you are eligible for. Both the rate and the PMI premium improve at each tier, so the same loan costs two people very different amounts.
Interest rates for conventional loans are very much credit score driven — the higher your score, the lower the rate you are eligible for. Both the rate and the PMI premium improve at each tier, so the same loan costs two people very different amounts.
Conventional loans are Fannie Mae and Freddie Mac loans — bought and guaranteed by those two agencies, which is what makes the guidelines consistent from lender to lender.
You can borrow up to this amount. Loans above it are considered jumbo or non-conforming, with their own guidelines and pricing.
Conforming limits are reset annually and are higher in some counties. Confirm the current figure with us before making an offer. More on jumbo loans
Fixed and adjustable rates are available, with terms from ten to thirty years. Shorter terms cost more each month but far less in total interest.
With a conventional loan you can purchase a primary residence, a second home or vacation residence, or an investment property — something the government-backed programmes do not allow.
Conventional loans are Fannie Mae and Freddie Mac loans.
Which is why the guidelines are the same wherever you apply — and why the difference between lenders comes down to pricing, service and how well someone structures your file.
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Start your application from your phone and finish it at your desk. Whether you're buying, refinancing or just exploring, we're here to help.
FrequentlyAsked Questions
No — and it's the single most common reason people delay buying. Conventional starts at 3% down, FHA at 3.5%, and VA and USDA can require nothing at all. The trade-off is mortgage insurance and a higher payment, which is worth weighing against several more years of saving.
It usually comes down to credit. FHA is more forgiving of past credit events and starts at 3.5% down, but its insurance typically stays for the life of the loan. Conventional needs stronger credit, starts at 3%, and its PMI cancels at 20% equity — which can be worth thousands over time.
USDA uses its own eligibility map and the boundaries surprise people — plenty of areas that feel suburban still qualify. There are also household income limits by county. Send us an address and we'll check both in a couple of minutes.
Often, yes. You'll use one loan program, but it can frequently be paired with assistance run by your state or county. These are consistently underused because buyers don't know they exist — ask us which ones you'd qualify for.
For the right situation it's a genuine option; for the wrong one it's expensive. The balance grows rather than shrinks, and it affects what's left to heirs. HUD counselling is required for good reason. We're glad to walk through it with your family present, and to compare it against downsizing or a HELOC first.