The conventional mortgage most people think of is the “confirming” loan that meets the requirements of Freddie Mac and Fannie Mae (they are government sponsored and by loans from lenders and then sell to investors). Conventional loans have a maximum loan amount of $726,200 in 2023 for most areas (Hawaii, Alaska and a few high cost markets have higher maximum rates).
Conventional loans typically require a down-payment that can be as low as 3% for first time home buyers otherwise it will be 15%. If putting down less than 20% then borrowers will be required to purchase private mortgage insurance (PMI). They will also have a minimum debt to income rates (DTI) which is the percentage of monthly that goes towards paying off debt.
While conventional loans are many people’s typical idea of a mortgage, we have many programs and will help you decide which best fits your specific needs! Fill out our qualifier and we can schedule a consultation.