MEET BRAD AND KATHY
- They are looking for a 30-year fixed-rate loan
- They both have high income
- They have a larger budget
- They are able to make a 10% down payment to lower the mortgage insurance
- The home they are purchasing exceeds the limit of $510,400 set by Fannie Mae and Freddie Mac
What is a Conventional Loan?
Whether you’re a first-time home buyer or looking to refinance your existing mortgage, our conventional loan program offers flexibility and stability to suit your needs. Read on to learn more about this popular mortgage option. This is a type of mortgage that is not insured or guaranteed by any government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, conventional loans are backed by private lenders and follow guidelines set by two government-sponsored enterprises: Fannie Mae and Freddie Mac.
Conventional Loan Key Takeaways:
- Minimum down payment as low as 3% (varies per loan type)
- Low monthly mortgage insurance
Other requirements and conditions apply
A Conventional Loan might be right for you if:
- You are looking to finance a higher-priced property
- You want to choose from various repayment terms, including fixed-rate and adjustable-rate options