A financing option designed to meet the needs of today’s home buyer.
A conventional loan is an excellent match for a buyer with a decent credit score and some savings for a down payment. Most believe that a 20% down payment is required to finance a home with a conventional loan. While a 20% down payment is certainly helpful, it is not required. Conventional loans can be financed with as little as 3% down payment. This loan type is considered a “conforming loan” meaning it conforms to the guidelines created by government-sponsored agencies known as Fannie Mae and Freddie Mac.
Conventional Loan Facts
If you have a decent credit score and money saved for a down payment this loan option is a good fit.
Variety of Home Purchase Types
This loan option can be used for primary, second, and investment homes.
Borrower Does Not Have to Be a First-Time Buyer
Conventional loans are available to first-time and repeat home buyers.
Affordable Mortgage Insurance With The Option to Cancel
Once there's 20% equity in the home, the mortgage insurance can be canceled.
Low Down Payment
As low as 3% down payment for home purchases and refinance transactions.
Flexible Options for Down Payment and Closing Costs Funds
Cash for down payment and closing costs can come from multiple sources
Fixed and Adjustable Rates Available
Both types of rates are available for conventional loan programs.
Your home buying journey begins here.
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Apply online now with our easy QuickStart App or talk to a licensed
Mortgage Loan Officer to review which loan is the best option for you.
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Frequently Asked Questions
1. Do I need to put down 20% on a conventional loan?
It’s a common misconception that a 20% down payment is necessary to purchase a home. There are a variety of loan options that allow for less than 20% down. Talk to your loan officer to find the best fit for your financial situation.
2. Do I have to have a perfect credit score in order to use a conventional loan?
A perfect credit score is not needed for a conventional loan. We typically recommend this loan for a buyer that has a credit score of 620 or higher. Always consult with your loan officer if a credit score is a concern. We can provide guidance.
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Three great options for starting: