• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Five Stars Mortgage

call888-705-1975
Request Contact
  • Home
  • About Us
    • Testimonials
  • Loan Programs
    • DSCR Investor Loan
      • Florida Hard Money Loans – Private Money
    • Jumbo Loan
      • Super Jumbo Loan
    • VA Home Loans
    • USDA Rural Loan
    • FHA Home Loans
    • First Time Home Buyer
    • Conventional Loan
    • Refinance
      • Cash Out Refinance
  • Buyers Toolkit
    • Mortgage Pre Approval
    • No Down Payment
    • No Closing Cost
    • The Loan Process
    • Buyers Checklist
    • Homeowners Insurance
    • Appraisal
    • Mortgage Videos
    • APR Versus Note Rate
  • Calculator
  • Mortgage Blog
  • Apply

Conventional Home Mortgage Loan

 

Conventional Loan GuidelinesConventional loans (also known as Conforming loans) are mortgages made by lenders and held on their portfolio until paid or sold. Fannie Mae and Freddie Mac purchase these mortgages that meet conventional loans limits, down payment requirements, debt-to-income ratios and other underwriting guidelines.

Both Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are government-sponsored entities created by Congress to purchase conforming mortgage loans and resell them on the secondary market.

The current 2023 Conforming Loan Limits for most locations in the U.S. is capped at $726,200 – with the exception of some high costs locations in CA, FL, VA, DC, CO, etc. These locations are capped at $1,089,300. Borrowers in search of a larger loan amount should visit the Jumbo Loan page here. 

Like all home loans, Conventional loans have some advantages and disadvantages. Conventional loans generally require a larger down when compared to FHA loans, USDA Mortgages, or VA Loans. Buyers are currently required to put down a minimum of 5% in order to obtain a Conventional loan. Please note, this down payment requirement only applies to owner-occupied primary homes.

If you are looking for a second home or investment property Conventional loan, you can expect this down payment requirement to be 10-20%. One benefit is Conventional loans do not have the upfront mortgage insurance premium (MIP) requirement like all Government home loan programs. All Government loans require this, and the fee can range from 1 -3.3% of your loan amount. However, Conventional loans may require monthly private mortgage insurance (PMI) for down payments under 20%.

Please note, as of 2023 all conventional loans require a min 620 credit score.

Conventional Loan Mortgage Terms:

Need assistance? Please submit the Request Contact form to connect with a specialist 7 days a week. 

Conventional loans come with a variety of different mortgage payment terms available. Home buyers can pick Adjustable Rate Terms or Fix Rate Terms. Adjustable Rate Conventional loans come in a 5-year, 7-year and 10-year terms. Fix Rate Conventional loan terms include 10 year, 15 year, 20 year, 25 year and 30 year term.

So what option is best for you?

Well, that depends on how much money you have available for a down payment, credit profile, etc. If you have 5% or more to put down on your new home, the Conventional home loan should certainly be looked at closely.  If money is tight for a down payment, or you want to conserve your saving, the Government home loan options like FHA, VA or USDA, maybe worth a closer look. Buyers that require larger loan amounts can learn more about Jumbo mortgage options up to 95%.  See all the Loan Programs in the tab above.

Contact us and we would be happy to review all available home loan options with you!  For prompt service, you can submit the “Request Contact” form at the top of your screen. We generally respond to all submitted requests within minutes during regular business hours. 

Primary Sidebar

Latest Mortgage News

FL Jumbo Loans – Complete Guide

Who says you have to drain all your cash reserves to buy your dream home? Well, thanks to jumbo … [More...] about FL Jumbo Loans – Complete Guide

Charlotte Jumbo Mortgage Review

The luxury housing market in Charlotte has remained strong in recent years. Jumbo loan programs are … [More...] about Charlotte Jumbo Mortgage Review

Jacksonville Jumbo Purchase-Refinance

Jacksonville Jumbo Purchase-Refinance: A jumbo mortgage is so-called because the loan amount is … [More...] about Jacksonville Jumbo Purchase-Refinance

Mortgage Calculator

year(s)
per year
per year
Calculate

Your total monthly payment

Principal & Interest:
Home insurance:
Property taxes:
PMI:

Five Stars is now operated and a web asset of Coast2Coast Mortgage NMLS# 376205
9050 Cypress Green Dr. Suite #403 Jacksonville, FL 32256

The use of this website is strictly for informational purposes only. We are not affiliated with any government agency.
Privacy Policy

Questions? Please submit the Request Contact Form
to connect with a specialist 7 days a week.