Exterior of a new home purchased from a conventional loan with brick and grey siding.

What is a Conventional Loan?

Conventional Loans are the most common mortgage type you’ll come across and often the usual starting point for many when shopping for a mortgage loan because they’re exactly what they sound like: conventional. The process to obtain one requires a minimum down payment of 5%, for a maximum loan amount of $726,200. Also, seller concession is up to 3-9% of the sales price, while the Private Mortgage Insurance (PMI) required is over 80% Loan-to-Value (LTV), or the amount of the mortgage compared with the value of the property. While all of that may sound convoluted, it is fairly, well, conventional.

Who is eligible?

A Conventional Loan will appeal to borrowers with a strong credit rating (at least 620 to qualify, with a score above 740 to help you get the best rate) and can put a down payment of 3% or more. They’re not backed by a government agency, and the loan limits are set by the FHFA (Federal Housing Finance Administration). The down payment and income requirements for a conventional loan are often set by Freddie Mac and Fannie Mae.

Features

Who is eligible?

A Conventional Loan will appeal to borrowers with a strong credit rating (at least 620 to qualify, with a score above 740 to help you get the best rate) and can put a down payment of 3% or more. They’re not backed by a government agency, and the loan limits are set by the FHFA (Federal Housing Finance Administration). The down payment and income requirements for a conventional loan are often set by Freddie Mac and Fannie Mae.

What other loan types are available?

When it comes to loans, you have many more options than you think. Find out about some here:

Possibility starts here.
Find a loan officer near you to get started.

Stay informed in
our Learning Center