Conventional Loans
Competitive terms for borrowers with solid credit and steady income.
What are Conventional Loans?
Conventional loans are not insured by the government. They follow the lending guidelines set by Fannie Mae and Freddie Mac, and they usually offer better terms and lower overall cost than government programs for borrowers with good to excellent credit.
They work for a primary residence, a second home, or an investment property, with terms from 10 to 30 years and fixed or adjustable rates.
Benefits
- Fewer limitations than government-backed loans
- No upfront mortgage insurance premium
- Private mortgage insurance can be removed once you reach 20% equity
- Higher credit scores can earn a lower interest rate
- Less strict appraisal and property standards than FHA, VA or USDA
- Faster loan processing
- Terms from 10 to 30 years
Requirements
- Minimum credit score of 620
- Down payment of 3% to 20%, depending on credit and income
- Debt-to-income ratio of 43% or less, with some flexibility under certain conditions
- Proof of income: pay stubs, two years of federal tax returns and W-2s
- Asset documentation: bank statements covering down payment and closing costs
- Employment verification showing a stable work history
- Photo ID and Social Security number
Frequently asked questions
What is a conventional loan?
A mortgage that is not insured or guaranteed by the government.
What is the minimum credit score?
Typically 620.
Can I avoid mortgage insurance?
With 20% down you can avoid private mortgage insurance, and you can ask to have it removed later once you reach 20% equity.
Can I qualify with a lower income?
Yes, as long as your credit score, debt-to-income ratio and down payment meet the lender's criteria.
Programs, rates and eligibility are subject to change and to underwriting approval. This page is general information and not a commitment to lend.
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