Conventional Mortgage

conventional mortgage

What is it?

  • Used to purchase or renovate a home or refinance an existing property.
  • Most conventional mortgages are called “conforming” mortgages as they usually fit the guidelines issued by Fannie Mae and/or Freddie Mac (also called Government Sponsored Agencies or GSE’s) that ultimately sell the mortgages to investors.
  • Typically requires PMI (Private Mortgage Insurance) when a buyer is not able to put at least 20% down.
  • Additionally, guidelines are less stringent regarding property condition, and gift funds may also be used to offset down payment.

Who can it help?

  • Individuals with a credit score of 620 or higher, and with income and assets that can be verified.
  • Usually, the buyer must have enough in reserves (money in savings accounts and/or investments) to cover down payment and closing costs.*
  • Traditionally, conventional loans have some of the lowest interest rates if qualifications fit the guidelines.*

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Types of Conventional Loans

To view our list of loan programs, click here.