Conventional Home Loan
Conventional Loans Offer Flexible Options for Qualified Homeowners
Conventional loan programs offer flexibility and options other loan types do not. A conventional loan adheres to the GSE (Fannie and Freddie Mac) guidelines that is insured by a private lender. Conventional loans conform to the loan limits set by Federal Housing Finance Agency
- Available for purchase and cash-out or rate-term refinance
- Single family, townhouses, and warrantable condos
- 2nd home and investor properties
- Various down payment options available
Do all conventional loans require private mortgage insurance (PMI)?
Lenders will require private mortgage insurance, PMI, on conventional loans when a homebuyer is putting less than 20 percent down on a purchase property. A homebuyer may cancel PMI once they have 20 percent equity in their property.
Can a conventional loan be refinanced?
Yes, a conventional loan may be refinanced. When refinancing a conventional loan, PMI will be required if the loan to value of the property has less than 20 percent equity.