Fixed-rate loan program for borrowers with good credit and larger down payments
Conventional Loan Quick Facts
Minimum Down Payment
Minimum Credit Score
Max Debt-to-Income Ratio
What is a Conventional Loan?
A Conventional Mortgage is simply any mortgage loan that is not insured or guaranteed by the federal or state government. Conventional Mortgages typically require a higher down payment, usually 5%–20%. They also have higher income and credit score requirements than government loans. Conventional loans are most commonly a 30-year fixed rate loan term, but are also generally offered in 25, 20, 15, and 10 year loan terms.
What are the benefits of a Conventional Loan?
Conventional Loans offer the following features:
- Buyer has immediate equity in the property.
- No private mortgage insurance is required with a 20% down payment.
- Closing costs and fees may be included in the loan.
- Fewer bureaucratic hurdles, making the loans quicker to process.
- No government stipulations and prepayment penalties if you sell or refinance your house.
Who may benefit from a Conventional Loan?
Conventional Loans may the right fit for you if:
- You’re a first-time or repeat homebuyer
- You have a good credit score and money to put down.
- You want a low down payment.
Sample Loan Scenarios:
10-year Loan Scenario: $200,000 purchase price, $160,000 loan amount, 20% down payment, $1,906.84/month (PITI), 10-year fixed 5.125% interest rate, 5.418% APR.
15-year Loan Scenario: $200,000 purchase price, $190,000 loan amount, 5% down payment, $1,661.67/month (PITI), 15-year fixed 4.125% interest rate, 4.565% APR.
20-year Loan Scenario: $200,000 purchase price, $160,000 loan amount, 20% down payment, $1,278.15/month (PITI), 20-year fixed 5.25% interest rate, 5.413% APR.
25-year Loan Scenario: $200,000 purchase price, $160,000 loan amount, 20% down payment, $1,181.58/month (PITI), 25-year fixed 5.49% interest rate, 5.63% APR.
30-year Loan Scenario: $200,000 purchase price; $194,000 loan amount; 3% down payment; $1,503/month (PITI); 30-year fixed 5.49% interest rate; 6.321% APR.
Loan Scenario: $200,000 purchase price; $190,000 loan amount; 5% down payment; $1,249.19/month (PITI); 30-year fixed 5.250% interest rate; 5.289% APR.
Loan Scenario: $200,000 purchase price; $160,000 loan amount; 20% down payment; $1,084/month (PITI); 30-year fixed 5.25% interest rate; 5.371% APR.
Meet Your Mortgage Expert for
Is a Conventional Loan right for you?
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