What is a Conventional Loan?

Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options.  If you are looking to buy a home in Eureka, McKinleyville, Arcata or Fortuna as well as the entire state of California, contact us today at 707-445-3027 or fill out quick quote.

Advantage of Conventional Loans

  • Minimum 5% down (3% for first-time homebuyers)
  • No upfront mortgage insurance
  • No mortgage insurance required with 20% down payment
  • Less strict appraisal standards
  • Mortgage insurance can be eliminated at 80% LTV
  • Can be used for investment property
  • Non-occupant co-borrowers permitted

Conventional Loan Eligibility

  • Purchase/Refinance
  • Minimum 5% down payment (3% for first-time homebuyers)
  • Primary residence, second home, investment property
  • 1-4 unit family residence
  • Minimum credit score 620

HomeReady and Home Possible Conventional Options

HomeReady and Home Possible loans are affordable, low down payment conventional mortgage products designed for creditworthy low- to moderate-income borrowers, with expanded eligibility for financing homes in low-income communities.  These options allow borrowers to use additional sources of income to qualify.

HomeReady Loan Eligibility

  • Purchase only
  • Minimum 3% down payment
  • Owner occupied only
  • Minimum credit score 620
  • Income restrictions may apply

Home Possible Loan Eligibility

  • Purchase/Refinance (rate/term only)
  • Minimum 3% down payment (5% for 2-4 units)
  • 1-4 Unit family residence
  • Owner occupied only
  • Minimum credit score 620
  • Income restrictions may apply

Qualify for a Conventional Loan Today

If you are are seeking a mortgage in Eureka, Arcata, McKinleyville, Fortuna or anywhere in California we can help.  We are committed to helping California realize the dream of home ownership.  For more information on Conventional loans or how to get started contact us today at 707-445-3027 or fill out the quick quote.