Conventional Mortgage

The most common type of mortgage that typically offers lower costs than other popular loan types. It is an excellent choice for most buyers!
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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%1
  • 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.2

  • 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 
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1 Mortgage insurance is required for down payments less than 20%. 

2 By refinancing the existing loan, the total finance charges may be higher over the life of the loan.