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 $200,000.00 sales price. $194,000.00 loan amount – 30-year fixed rate loan with zero points based on 360 monthly payments at $817.91 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 $6,000.00 required. Example includes $1,295 origination fee, 3.312% APR, and 3.000% interest rate as of 08/13/2020. Rate, fees, other charges and terms subject to change. Available loan programs and terms will vary by state.
Fannie Mae®, Desktop Underwriter®, and DU® are the registered servicemarks of the Federal National Mortgage Association.
Freddie Mac® and Loan Product Advisor® are the registered servicemarks of the Federal Home Loan Mortgage Corporation.