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Conventional Loan FAQs

We have the answers to the most common conventional loan questions.

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Have questions about how to apply for a conventional loan?

We have answers. Please feel free to reach out directly to our loan officers if you have further questions. We look forward to hearing from you!
One of the most common types of loans that home buyers come across is the conventional loan. These loans aren’t 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’s lenders, such as banks, that are responsible for approving your conventional loan. Here's a blog that explains more about conventional loans. 

Among the documentation you may need for a conventional loan are:

  • Copy of driver’s license
  • Two years full tax returns if self-employed - all pages and all schedules
  • Two years W2's
  • Two most recent pay stubs with year-to-date pay
  • Two most recent asset statements - all pages with full transaction history
  • Copy of your mortgage statement if you currently own
You can purchase property types such as: single family homes, condos,  and townhomes.  These homes can be purchased as primary residences, second homes or investment properties.
Private mortgage insurance (PMI)  is typically required on a conventional loan any Fannie Mae/Freddie Mac loan when there is less than a  20% down payment.
Credit score requirements for conventional loans vary from lender to lender, but a conventional loan may require on average a higher credit score than an FHA loan.
The minimum down payment amount for a conventional loan is 3% for a fixed-rate mortgage, and 10% for adjustable rate mortgages. It is best to have as much saved up as possible for a conventional loan down payment as a down payment of 20% or more can eliminate the need to pay  monthly private mortgage insurance ('PMI').
Conventional loan limits are set by Fannie Mae and Freddie Mac and can vary by different areas in the U.S. To see what the loan limit is in your area, click here.
Conventional loans may offer some of advantages to other loan types. They require down payments as low as 3%, there may be less paperwork, and you will not have monthly primary mortgage insurance ('PMI') with a down payment of at least 20%.
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