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The most popular and versatile home loan in America
Conventional loans are one of the most common loan types. They are the standard around which most other loan programs are designed. Commonly referred to as "conforming" loans, they 'conform' to a prescribed set of underwriting standards established by the two Government-Sponsored Entities Fannie Mae (FNMA) and Freddie Mac (FHLMC).
This is a full-doc loan, meaning that all income and assets are verified by the lender in order to qualify. The income from the borrower's tax returns must show enough taxable income to demonstrate the ability to repay the new loan.
Qualifying is usually straight-forward, but can be unyielding if your scenario doesn't fit into conforming underwriting standards.
Conventional loans can be used to finance a wide variety of home types, including Single family homes, townhomes, villas, multi-family homes, and condominiums.
They can be used to finance primary residence homes, second homes/vacation homes, and even investment homes.
The minimum down payment is 3% of the purchase price, as long as the applicant has not owned a home in the most recent 5 years. For experienced homebuyers, the minimum down payment is 5% of the purchase price. If the applicant has a 20% or more, the applicant does not need to pay Private Mortgage Insurance (PMI), and may be eligible to self-manage their premiums for property taxes and homeowners insurance.
If the down payment is at least 10%, in certain circumstances, Conventional financing can also be paired with a Home Equity Line of Credit (HELOC) to achieve certain goals, such as avoiding paying PMI, to make purchase a condominium easier, or to avoid the hassle of Jumbo financing. This is called COMBO Financing. Learn more about COMBO Financing HERE.
If you are considering Conventional financing, we'd love the opportunity to answer all of your questions and review your options and see if this is the right loan program for you.
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Minimum Down Payment
3%
(first time homebuyers and/or those who have not owned a home in the most recent 5 years)
5%
Experienced homebuyers
Minimum Down Payment to avoid PMI
20%
PMI (Private Mortgage Insurance)
Applies if financing > 80% of sales price
Minimum mid-credit score
620
Min/ Max Loan Amount
$50,000 - $832,750
* in most areas of Florida, except Monroe County (The Florida Keys, $990,150
Loan Repayment Terms
10 yrs, 15 years, 20 years, 30 years
Amortization
Fixed rate or adjustable rate
Prepayment Penalties
None
Recent Negative Credit Events
(Bankruptcy, Foreclosure, Short Sale, Deed-in-Lieu)
» See Eligibility Waiting Period Chart
KEY FEATURES
OCCUPANCY
Owner-occupied, Second/Vacation Homes, and Investment properties
NON-US Citizen Requirements
LOAN SIZE LIMITS
FOR MOST COUNTIES IN THE STATE OF FLORIDA, THE MAXIMUM LOAN SIZE FOR A SINGLE-UNIT HOME IS $832,750.
The maximum loan size in Monroe County (Florida Keys) - $990,150
Click image below for an interactive map of all US Counties.
ACCEPTABLE HOME TYPES
This is not a commitment to lend. Not all borrowers will qualify for the loan programs listed. All program terms and conditions are subject to change and may be discontinued without prior notice. Contact loan originator for program questions and scenarios.
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