Home / Loan options / Conventional
Conventional loans.
Fannie Mae and Freddie Mac loans, the most common way people buy a home. We compare them honestly against FHA on your own numbers.
The most common loan
What conventional means
A conventional loan is one that is not insured or guaranteed by a government agency. Most conventional loans are written to Fannie Mae or Freddie Mac guidelines, which is what makes them widely available and competitively priced.
The mortgage insurance difference
This is the reason conventional often beats FHA for a borrower with decent credit. Conventional mortgage insurance is cancellable: once you have built enough equity, it comes off and your payment drops. On most FHA loans it never does.
Conventional mortgage insurance is also priced on your credit score, so a stronger score is rewarded directly. FHA prices it the same for everyone. If your credit is strong, conventional usually wins. If it is not, FHA usually does. That is the whole comparison, and we will run it on your file rather than guessing.
Low down payment conventional options
Both agencies run programs aimed at buyers who have not saved a large amount, and at first-time buyers specifically. Some carry income limits tied to the area you are buying in; some carry a required homebuyer education course. Which ones you qualify for depends on your income relative to your county, so it is a question your loan officer answers with your numbers in front of them.
Conventional loans have a maximum amount set each year and varying by county. Above it, you are into jumbo territory, which is a different set of guidelines.
Find out what you qualify for.
A licensed loan officer reviews what you send and tells you where you stand, in writing. No cost, and no obligation to go further.