Best for Buyers with established credit and a down payment of 3% or more.
A conventional mortgage is any home loan that is not insured or guaranteed by a federal agency. Conforming conventional loans follow guidelines set by Fannie Mae and Freddie Mac, which is what allows lenders to offer them at competitive rates.
Conventional financing is available for primary residences, second homes and investment properties, with fixed-rate and adjustable-rate options. Once you reach 20% equity, private mortgage insurance can typically be removed — one of the biggest long-term advantages over government-backed programs.
Highlights
- Down payments as low as 3% for qualified first-time buyers
- Fixed-rate terms from 10 to 30 years, plus ARM options
- Mortgage insurance can be cancelled once you reach 20% equity
- Available for primary, second-home and investment purchases
Things to consider
- Credit score requirements are generally higher than FHA
- Loan amounts must fall within conforming limits (see Jumbo for larger loans)
- Debt-to-income guidelines apply
Program descriptions are general and for education only. Guidelines, limits and eligibility change; your mortgage advisor will confirm what applies to you. Not a commitment to lend.