Conventional Loans Overview

Conventional loans are generally a good fit for most borrowers who do not have any special circumstances and have good credit. Qualifying for a conventional loan typically provides you with a more favorable interest rate and loan terms as a result of your better credit rating.

Since there is such a wide variety of conventional loans, the requirements vary. Whether you are financing an owner-occupied home, second home or investment property, we can provide you available rates and minimum down payments requirements. If you’ve had any bankruptcies or foreclosures in the past 7 years, an FHA or specialty loan might provide a better option than a conventioal loan.

 

Benefits

  • Higher maximum loan limits
  • Financing for secondary, seasonal and rental properties available
  • 5% down payment options, with 3% down payment available in some circumstances (for primary residence)
  • Both fixed rate and Adjustable Rate Mortgage (ARM) options available
  • No up-front mortgage insurance
  • No annual mortgage insurance once Loan-to-Value reaches 80%/78%

Requirements

  • Many conventional loans have stricter down payment and underwriting requirements
  • Conventional loans are not insured by any federal agency; as a result this loan type may be subject to Private Mortgage Insurance (PMI) if the loan-to-value exceeds 80%.  
  • Typically, they are all full-documentation loans with proof of ability to repay
  • For wait times after a foreclosure, short sale or bankruptcy, contact one of our loan officers to discuss your circumstances

What will my payment be?

Down Payment % 0% 3.50% 5% 10% 20%
Down Payment Amount
Loan Amount
Available Loans VA
USDA
FHA Bond
FHA FHA
Conventional
FHA
Conventional
Jumbo
2nd Chance
FHA
Conventional
Jumbo
2nd Chance
Principal & Interest
*Principal & interest only. Amount does not include other applicable monthly fees such as mortgage insurance, property taxes, insurance, HOA fees, or flood insurance.

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Contact us today and we can discuss your options and find a program that is perfect for you.