Conventional Home Loans

What is a Conventional loan?

A conventional loan is a mortgage not backed or insured by a government agency. In contrast, FHA, VA, and USDA loans are government-insured. There are two categories:

  • Conforming that adhere to agency guidelines of Fannie Mae and Freddie Mac  
  • Non-conforming such as jumbo loans that don’t conform to agency guidelines

Fannie Mae and Freddie Mac helped make mortgages more widely available. As a result, benefits such as a 3% down payment are available. Conventional loans include alternate loan programs allowing for non-traditional credit and income. In addition, there are specific programs for first-time homebuyers.

Conforming Loans

Conforming loans are often referred to as conventional and are available for primary, vacation, and investment properties. The loan size is limited to 647,250 for a single-family home. Above this limit, the loan is considered a jumbo loan. However, in high-priced home counties conforming loan limits are increased and are referred to as high balance conforming loans. 

Fixed-Rate Loans

These conforming loans allow up to 97% financing for primary homes, 90% for second-vacation homes, and 85% financing for investment property. Property types allowed are 1-4 Family Units, Condominiums, Townhouses, PUDs, and double-wide manufactured homes.  

3% Down Payment 

Conventional fixed-rate allow financing up to 97% for primary residences of single-family homes, condominiums, and townhomes.

  • As little as 3% down
  • 20% Down payment avoids PMI
  • Seller-paid closing costs allowed
  • Gift funds allowed
  • Reduced PMI premiums with CharterStone Mortgage

First-Time Homebuyer 3% Down Loans 

Fannie Mae HomeReady and Freddie Mac Home Possible programs are r first-time homebuyer primary residences loan programs. They are designed for low to moderate-income families. These loan programs offer lower rates, and mortgage insurance premiums make these programs more accessible for buyers to qualify.

  • Low Fixed rate monthly mortgage payment
  • One borrower must be a first-time home buyer
  • Income limits apply to this program

Lower Private Mortgage Insurance Premiums

 Let’s compare, and find the right program for you. CharterStone Mortgage has access to preferred low PMI premiums keeping your overall payment low. The final payment with MI is lower with us than with other mortgage providers. The loan program is a great fit for those with good to excellent credit. Different credit levels may want to consider an FHA or VA loan. Call us today!

No Private Mortgage (PMI) Insurance Loans 

This program does not have a separate payment for mortgage insurance and is available for up to 97% financing. The rate is higher than the standard program; however, the mortgage payment is lower. This program works best for very good to excellent credit scores. Call us today to compare programs.

Programs are subject to change without notice. All applicants must meet underwriting guidelines from the lender that are subject to change without notice and must meet all Federal and State regulations. This information is not guaranteed to be accurate due to changing financial and economic environment.  

**CharterStone Mortgage is not affiliated with FHA, VA, USDA, or the Federal Government.

Programs are subject to change without notice. All applicants must meet underwriting guidelines from the lender that are subject to change without notice and must meet all Federal and State regulations. This information is not guaranteed to be accurate due to changing financial and economic environment.  

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