A conventional mortgage refers to loans that are not insured or guaranteed by the federal government.
Conventional mortgages also are referred to as Fannie Mae or Freddie Mac loans and allow for a higher maximum mortgage amount than an FHA loan.
- Down payment minimum of 3% of price
- No mortgage insurance with a 20% down payment
- Gift for the down payment and closing costs allowed
- The seller can pay a portion of the buyers closing costs and prepaid items. Conditions apply.
- Special first-time homebuyer programs available
- Escrow not required if LTV is 80% or lower
- Low down payment possible
- Primary residence, Investment properties and second homes
- 1-4 family, Condominiums and townhouses
- 90% max LTV for a second home
- 80% maximum LY+TV for single unit investment properties
- Loan amounts up to $647,200 and higher in some areas.