Loan types
Conventional loans for buyers who want a familiar mortgage.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They are the usual path for a purchase or refinance when a government-insured program is not the better fit.
Who it is for
- Buyers who can put some money down and meet standard credit guidelines
- Homeowners refinancing a rate-and-term or taking cash out
- Second homes and many investment properties, with different pricing than a primary home
How it usually works
- Down payments can start near 3% for some first-time buyers. Many purchases use 5% to 20%.
- Private mortgage insurance is usually required when you put less than 20% down. It can come off later, once equity is high enough and the servicer approves the removal.
- Loan amounts at or under the conforming limit for your county use standard conventional pricing. Amounts above that limit are jumbo.
What to have ready
- Photo ID
- Two years of income history, or the documents your file actually needs
- Recent bank statements
- Purchase contract, if you already have one
Guidelines change, and lenders add their own rules. The description above is a starting point, not a quote and not an approval.