Loan program · Core
Conventional Loans
Conventional loans are mortgages that follow guidelines set by Fannie Mae and Freddie Mac rather than a government insurance program. They are the default option for many buyers because they are flexible on property type and occupancy, and because private mortgage insurance can be removed once you build enough equity.
Guidance by Manny
Who it is designed for
- Buyers with reasonably established credit and documentable income
- Buyers who want to avoid the permanent mortgage insurance structure used on many FHA loans
- Second home and rental property buyers, who cannot use FHA, VA or USDA financing
- Homeowners refinancing to change rate, term, or remove mortgage insurance
Eligible occupancy types
- Primary residence
- Second home
- Investment property
Down payment or equity
As little as 3% down for eligible first time buyers on a primary residence, 5% for many repeat buyers, more for second homes and investment properties.
Major benefits
- Private mortgage insurance can generally be cancelled as equity grows, unlike most FHA loans
- Available on primary residences, second homes and rentals
- Wide range of fixed and adjustable term options
- Appraisal waivers are sometimes available on qualifying files
Important considerations
- Pricing and mortgage insurance cost are sensitive to credit score and down payment
- Loan amount limits apply; larger amounts move into jumbo financing
- Condo and property condition guidelines can be stricter than government programs
How qualification generally works
- Credit history is reviewed along with the credit score
- Income is documented and compared to your monthly debts to arrive at a debt to income ratio
- Down payment and reserve funds are sourced and seasoned
- The property is appraised and must meet program condition requirements
Documents commonly requested
- Photo ID and Social Security number for each borrower
- Most recent pay stubs covering a full 30 day period, if you receive W2 wages
- W2s and/or federal tax returns for the most recent years requested
- Two months of asset statements for accounts used for down payment and reserves
- Current mortgage statement, homeowners insurance and property tax information on properties you own
- Explanations for large or non payroll deposits
Not sure this is the right mortgage?
Tell Manny what you're trying to accomplish. He can help you compare this program with other financing options that may fit your situation — your income and how it is documented, your credit and assets, the property and how you will use it, your timeline, and the guidelines that apply. Most borrowers have more than one workable path.
Frequently Asked Questions
Related programs and next steps
FHA Loans
Government insured financing with flexible credit and down payment guidelines.
Learn more CoreJumbo Loans
Financing above conforming loan limits for higher priced homes.
Learn more InvestmentConventional Investment Property Loans
Agency financing for rentals, qualified on your personal income.
Learn more RefinanceRate and Term Refinance
Change your rate, your term, or your loan type without taking cash out.
Learn moreConsidering conventional loans?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.