Conventional Loans

Conventional Loans

One of the most common types of loans that home buyers come across is the Conventional loan. These loans are not backed by the government, like FHA and VA loans.

Conventional loans follow the guidelines that Fannie Mae and Freddie Mac – two agencies responsible for standardizing mortgage lending – have set. But it is lenders, such as banks, that are responsible for approving their Conventional loan.

Designed for lower-income families

Limited to owner-occupied, 1-unit primary residence financed through Fannie Mae or Freddie Mac

FICO 620 (guidelines can change)

High Balance Loan amounts up to $1,073,000 in high-cost areas for a single unit

Eligible for primary and secondary homes

More competitive rates and easier guidelines

Faster turn times

Loan amounts up to $715,000

A conventional loan can be used to finance a property in a high-cost area

15-, 20-, 25- & 30-year fixed rate

Down payments as low as 3% depending on loan amount

Among the documents borrowers may need for a Conventional loan are:

  • Fully completed loan application (1003)
  • Copy of driver’s license
  • Two years of full tax returns if self-employed – all pages and all schedules
  • Two years of W2’s for all borrowers
  • Two most recent pay stubs with year-to-date pay for all borrowers
  • Two most recent asset statements – all pages with full transaction history for all accounts
  • Copy of their mortgage statements on any properties owned if borrowers currently own

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I represent clients who authorize me to do so. I do not work for or represent the interest of any mortgage lender or other duly authorized entity to whom I may submit a mortgage application on behalf of a Client. My services are provided in a Mortgage Broker capacity and I am not authorized to approve or deny a mortgage loan request. NMLS 1691763 / NMLS 1322774