Flexible cash planning
Qualified buyers may have several down payment structures to compare.
CONVENTIONAL HOME LOANSCompare Conventional loans.
Compare Conventional loans.
Review the down payment, payment, and mortgage insurance.
Conventional loans can support several down payment, occupancy, and property choices. Compare credit, mortgage insurance, loan limits, and the complete monthly cost before choosing an option.
Compare Conventional loans. Review the down payment, payment, and mortgage insurance.
A Conventional mortgage is not insured or guaranteed by a federal housing agency. Many conforming loans follow standards associated with Fannie Mae or Freddie Mac, while other Conventional products can use lender-specific requirements.
Qualified buyers may find options for a primary residence, second home or investment property. Down payment, mortgage insurance and pricing depend on the borrower, occupancy, property, loan amount and complete transaction.
The useful comparison is one realistic structure against another using the same purchase price, cash contribution, term and expected time in the loan.
Conventional loan benefits and requirements.
Broad property reach
Primary, second-home and investment paths may be available.
Mortgage-insurance options
Coverage and cost can change with loan-to-value and borrower profile.
A path to future change
Eligible borrower-paid PMI may later be cancelled under applicable rules.
Credit matters, but it does not make the decision alone.
Credit profile influences pricing, but loan-to-value, occupancy, property type, loan amount and reserves can change the available structure too.
A condo, multiunit home, manufactured home, second home or investment property can introduce additional project, appraisal, reserve or documentation review.
Borrower profile
Review credit history, income, debts, assets and the complete repayment picture.
Cash contribution
Compare down payment, closing costs and the reserves left after closing.
Property and occupancy
Confirm the home type and how the property will be used.
Loan-limit fit
Check the county and unit limit before assuming the loan is conforming.
CASH AND MONTHLY COSTStart prequalification →
A lower rate can still create a weaker transaction.
Compare rate, APR, points, lender credits and mortgage insurance with the same assumptions. Changing the down payment can affect both pricing and monthly cost.
Then test the holding period. An upfront cost only earns its place when the expected savings have enough time to recover it.
How the loan process works.
Start with one consistent scenario
Use the same price, term, occupancy, and timing for every option.
Compare the cash to close
Review the down payment, closing costs, and reserves left after closing.
Calculate the complete payment
Include taxes, insurance, association dues, and mortgage insurance when applicable.
Confirm the property requirements
Review appraisal, project, condition, and occupancy requirements.
Choose the loan for the expected timeline
Select the option that works at closing and remains practical for the years ahead.
Compare Conventional with other loans.
DecisionConventionalFHA
Down payment
May begin at 3% for certain qualified buyers
May begin at 3.5% for qualified buyers
Mortgage insurance
PMI may apply above 80% loan-to-value
Upfront and monthly mortgage insurance generally apply
Occupancy
Primary, second-home and investment paths
Eligible primary residence
Property review
Appraisal and applicable project requirements
FHA appraisal and property requirements
Questions buyers ask about Conventional loans.
Is a Conventional loan only for buyers with perfect credit?+
No. Approval and pricing consider the complete borrower and transaction.
Can a Conventional loan start with 3% down?+
Certain programs may permit a 3% down payment for qualified buyers. Eligibility varies by program.
When can PMI be removed?+
Borrower-paid PMI may have cancellation and automatic termination provisions when applicable requirements are met.
Can Conventional financing be used for an investment property?+
Potentially. Investment-property structures can carry different down-payment, reserve and pricing requirements.
What makes a Conventional loan Jumbo?+
The loan becomes nonconforming when the required amount exceeds the applicable county and unit limit.
How does a larger down payment change the comparison?+
It may reduce the loan amount, monthly payment or mortgage-insurance cost, but it also leaves less cash available after closing.
What should I compare besides the rate?+
Compare APR, points, lender credits, mortgage insurance, monthly payment, cash to close and the expected time in the loan.
COMPARE WITH YOUR NUMBERS
Compare Conventional financing.
Start prequalification for a new purchase scenario, or enter the terms from an offer you already have.