- Down payment
- As low as 3%
- Credit score
- Typically 620 or higher
- Mortgage insurance
- Only under 20% down, and removable
- Property use
- Primary, second home or investment
What it is
A conventional loan is not backed by a government agency. It follows Fannie Mae and Freddie Mac guidelines, and it works for a primary home, a second home or a rental.
How it works with a broker
Pricing on a conventional loan moves with your credit score and down payment more than on any other loan type. A 20-point difference in score can change your rate, and so can the lender you choose.
That is where shopping matters. I price the same loan with dozens of lenders on the same day and show you the spread, including the cost of private mortgage insurance if you put less than 20% down.
Common questions
Do I need 20% down?
No. First-time buyers can put down as little as 3%, and repeat buyers 5%. Below 20% you pay private mortgage insurance, which comes off once you reach enough equity.
How is this different from FHA?
Conventional loans reward higher credit scores with lower costs and let you remove mortgage insurance. FHA is more forgiving on credit but keeps mortgage insurance for the life of most loans. I will run both side by side.
Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.
Find out what you qualify for.
Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.