- No processing or underwriting fees
- Up to $500 credit towards closing1 for Farm Bureau Members
Benefits and Features:
- Lower cost than many government programs that require mortgage insurance
- Available for primary, second homes, and investment properties
- Traditional down payment of 20%, but can go as low as 3%2
- Term length options are more flexible and easier to customize for your needs
- Can be used for many types of houses
- Can be used for purchase or refinance
Who Is Eligible for a Conventional Loan?
While government-backed loans like VA, USDA, and FHA loans are designed to make homeownership possible for more people, conventional loans typically have more stringent standards. Conventional loans typically require borrowers to demonstrate stronger financial profiles in order to qualify.
Your eligibility for a conventional loan will depend on your financial and credit history. We'll look at your credit score, debt-to-income ratio, your sources of income, and your available funds.
Understanding Down Payments and Mortgage Insurance
With a conventional mortgage, you may choose to pay as little as 3% down, but you will be required to have Private Mortgage Insurance (PMI) if your down payment is less than 20%. PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage. It is a monthly fee that is included in your mortgage payment. Once you've built at least 20% equity in your home, you can work with your lender to cancel your PMI and remove the extra expense from your monthly payment.
While PMI does increase the amount of your monthly mortgage payment, it enables you to buy now and begin building equity instead of waiting years to build enough savings for a 20% down payment.
Refinance an existing mortgage for a better rate, different terms, or to get cash out for whatever you need.3
- Conventional, fixed-rate loan
- Available for primary residences, secondary homes or investment properties
- Equity 20% or higher means no mortgage insurance
- Remove FHA or USDA mortgage insurance
Finance the cost of improvements on a newly purchased or refinanced home, second home, or investment property into the loan amount.4
- Conventional, fixed-rate loan
- Variety of eligible improvements
- Escrowed renovation funds held in an interest-earning account
- Any remaining funds in escrow at the end of renovation are applied to pay down the principal balance of your mortgage
1 This offer must be mentioned at time of application, which extends a credit of up to $500 applied at the time of closing. Offer excludes the “One-Time Construction” loan product. Borrower is responsible for closing costs incurred if the loan does not close and/or is not funded by Farm Bureau Mortgage, LLC. A borrower may not use this offer to obtain a refund for closing costs in the event that a loan fails to close or fund. This offer cannot be used with any other discount or promotion. This offer applies to mortgage applications and is subject to change without notice.
2 Mortgage insurance is required for down payments less than 20%.
3 By refinancing the existing loan, the total finance charges may be higher over the life of the loan.
4 The financed amount is based on the estimated home value after the renovations.
Farm Bureau, FB, and the FB National Logo are registered service marks owned by and used by Farm Bureau Mortgage under license from the American Farm Bureau Federation. Farm Bureau Mortgage is a service-to-member institution which provides mortgage services to Farm Bureau members and others in participating states. See Affiliated Business Arrangement Disclosure for more details.