Conventional Loan

A conventional mortgage or conventional loan is a home buyer’s loan that is not offered or secured by a government entity. It is available through or guaranteed by a private lender or the two government-sponsored enterprises—Fannie Mae and Freddie Mac. For first-time home buyers, your down payment could be as little as 3%. For all other buyers, the required down payment is 5%. You also have the option to pay the private mortgage insurance upfront in a lump sum to avoid having the monthly fee added.

Minimum Down Payment: 5%

Gift Funds: All funds required can be a gift from an acceptable donor; family member, fiance, domestic partner, etc.

Seller Sales Contributions: 

90.01%-95%  LTV = 3%

75%-90%  LTV = 6%

75% LTV or le ss = 9%

Maximum Loan Amounts (Owner Occupied): 1 UNIT - $510,400

Mortgage Insurance-Purchase Transactions: MI rates vary due to credit and LTV