A good fit for most borrowers without special circumstances and that have good credit.
Down payments as low as 3% for a primary residence
Higher maximum loan limits than some programs such as FHA
Financing available for secondary and investment properties
Fixed rate and Adjustable Rate Mortgage (ARM) options available
No up-front or monthly mortgage insurance with 20% down payment
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.
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.