Why Choose a Conventional Mortgage (Fannie Mae/Freddie Mac)?
A conventional mortgage refers to any loan that is not insured or guaranteed by the federal government, as opposed to government-insured loans including
Federal Housing Administration (FHA)
U.S. Department of Veteran Affairs (VA)
U.S. Department of Agriculture (USDA)
Conventional mortgages (whether conforming or not) typically have a slightly higher down payment than government loans; however, this loan option normally provides more flexibility with fewer restrictions.
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Down payment minimum 3% of sales of price unless value comes in lower Purchase of Single Family Primary Residence Gift for down payment and closing costs allowed Seller can credit up to 6% of sales price towards buyers closing costs and prepaid items, conditions apply Higher loan limits for multi-family up to 4 units Special first-time home buyer programs available |
General Guidelines:
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*Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.