Conventional Loans are the “typical” loans offered by many mortgage companies. Rates and terms vary by investor and loan specifics, but programs typically require a minimum 620 credit score.
Conventional Loans are approved by a computerized underwriting process called an Automated Underwriting System – either Desktop Underwriter® by Fannie Mae® or Loan Product Advisor® by Freddie Mac®.
For owner-occupied homes, borrowers can take advantage of a low down payment option, making this a good option for first-time homebuyers or those with less money to put down upfront.
All loans are subject to credit approval.
Example of 97% LTV (3% Cash Down) Conventional Loan Program with $280,000.00 sales price. $271,600.00 loan amount – 30-year fixed rate loan with zero points based on 360 monthly payments at $1,126.85 each (P&I only). Monthly payments do not include required mortgage insurance, taxes, insurance premiums or other applicable escrows. Actual payment amount will be higher. 3% cash down payment of $8,400.00 required. Example assumes 680 credit score and includes $1,295 origination fee, 3.245% APR, and 2.875% interest rate as of 12/17/2020. Rate, fees, other charges and terms subject to change. Available loan programs and terms will vary by state.
Freddie Mac® and Loan Product Advisor® are the registered servicemarks of the Federal Home Loan Mortgage Corporation.