Conventional Mortgage

conventional mortgage

Conventional Loans

Conventional loans are mortgage options not backed by a government agency. They are broken down into conforming loans, which have a maximum loan amount prescribed by the federal government, and non-conforming loans, which vary by lender.

Benefits include the option to avoid private mortgage insurance (PMI) by putting at least 20% down, as well as more flexible loan requirements.

If you feel you are a good candidate for a conventional loan, or if you would just like to learn more about them, we encourage you to reach out to one of our dedicated Mortgage Advisors.

While everyone’s situation is different, we take special care to guide you toward the right mortgage product to meet your needs!

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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.

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