Conventional Loans
A good fit for most borrowers without special circumstances and that have good credit.
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Down payments as low as 3% for a primary residence
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Higher maximum loan limits than some programs such as FHA
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Financing available for secondary and investment properties
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Fixed rate and Adjustable Rate Mortgage (ARM) options available
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No up-front or monthly mortgage insurance with 20% down payment
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Typically, have lower interest rates and lower fees than other types of loans
Conventional Down Payment Requirements
Conventional Loans for purchase transactions require the buyer to put down at least 5% - 20% of the purchase price of the home. Most lenders require at least 10% equity in the property on refinance transactions. You might qualify for a HARP 2.0 Loan if you don't have enough equity to qualify for a conventional refinance.
Eligible Property
Most conventional loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can also be used to finance a primary residence, second home and investment property.