Conventional Loans

What Is a Conventional Loan?

If you have good credit and stable income, a conventional loan might be the right option for you, since conventional loan programs traditionally offer:

• Lower interest rates for borrowers with good or great credit

• Flexible mortgage insurance options, if applicable (mortgage insurance not always necessary)

• Fewer penalties and fees

• Flexible loan terms

• Down payments range from 3% - 20%
   

Can I get a conventional loan with 5% down?

There are conventional loan programs that allow for a down payment as little as 3%, so if you qualify for these programs, then yes! In fact, one of the biggest home-buying myths out there is that you need a 20% down payment to buy a home; you absolutely don’t.

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Take note, however, that if your down payment is less than 20%, a private mortgage insurance (PMI) payment will be added to your monthly mortgage payment, until you have paid off 20% of the mortgage amount.