Conventional Loans typically have better rates, terms and/or lower fees than other types of loans.
These loans (also referred to as conforming) are not guaranteed or insured by any Federal Agency but must conform to guidelines established by Fannie Mae and Freddie Mac. A typical misconception of these loans is you need at least 20% down to qualify. However, that is not correct. We have programs that we can get you into a home for much less. The Home Possible (5% down) and Home Possible Advantage (3% down) are two programs that require less.
- Generally, requires a higher down payment than other loans.
- Mortgage insurance (MI) is required for all loans that have less than 20% down.
- Mortgage insurance (MI) is removed once the balance reaches 78% or a new appraisal is ordered and there is 20% equity.
- You can buy-out your Mortgage insurance premium at a discounted rate
- Not guaranteed by any Federal Agency
- Requires a good credit score
- Must have stable income