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Conventional Loans

The Most Popular Home Loan – As Low As 3% Down

A conventional loan is backed by either Fannie Mae or Freddie Mac, the two entities which comprise the Federal Housing Finance Agency (FHFA). Conventional loans account for more than half of all new mortgage loans. Residential properties of all types can be financed with conventional loans. Down payments typically range from 3% to 20% of the total purchase price. If the down payment is less than 20%, the loan will almost always require mortgage insurance. Mortgage insurance on conventional loans is typically less expensive than on other loan types! A conventional loan is for folks who have a larger down payment and excellent credit.

Flexible Terms to Fit Your Budget

30-year, 25-year, 20-year, 15-year and even 10-year conventional loans are available. You can choose between a fixed-rate and an adjustable-rate mortgage loan. A fixed-rate mortgage interest rate never changes over the life of the loan, whereas an adjustable-rate mortgage rate might rise or fall depending on current interest rates and some have a fixed portion for part of the life of the loan.

*This page is meant for educational purposes is not a commitment to lend. To qualify for a conventional mortgage loan, please speak to one of our licensed loan officers or apply online.

FAQs

Conventional Loans FAQs

What's the difference between conforming and non-conforming conventional loans?
Conforming loans meet Fannie Mae and Freddie Mac guidelines while non-conforming loans exceed these limits. The key benefit is that conforming loans typically offer lower interest rates and more flexible terms because they can be sold to these government-sponsored entities.
You can request to cancel PMI once you reach 20% equity in your home through payments or appreciation, and it automatically terminates at 22% equity. This is a major advantage over FHA loans where mortgage insurance lasts for the life of the loan, potentially saving you hundreds per month.
Yes! Conventional loans can be used for primary residences, second homes, and investment properties. While investment properties require larger down payments (typically 15-25%), conventional loans offer the flexibility to build your real estate portfolio beyond just your primary home.
Conventional loans typically allow debt-to-income ratios up to 45% (sometimes 50%), meaning your total monthly debt payments can be up to 45% of your gross income. This calculation helps ensure you can comfortably afford your mortgage payment while maintaining your other financial obligations and quality of life.
Conventional loans require as little as 3% down for qualified first-time homebuyers. If you’re not a first-time buyer, 3% down may still be available if your income is below the area median income (AMI). Most other buyers typically put down 5% or more. Putting 20% down avoids mortgage insurance, but a lower down payment can help you keep more cash on hand. We’ll help you choose the option that best fits your goals.
Testimonials

Why We Chose Conventional Loans

-The Glauser Family

"We have done a couple of mortgage with The Staples Group now because the experience has been very enjoyable. We had worked with another lender in our first home purchase and were pleasantly surprised at how low the Staple Group rates were just how much they communicated with us during the process! When spending so much money it was nice to always know what was going on. After doing an FHA loan for our first home purchase, we opted for a conventional mortgage in our most recent transaction because we were able to come up with 20% down and avoid mortgage insurance entirely! It feels great to not pay mortgage insurance anymore!"

Why We Chose Conventional Loans

-The Glauser Family

"We have done a couple of mortgage with The Staples Group now because the experience has been very enjoyable. We had worked with another lender in our first home purchase and were pleasantly surprised at how low the Staple Group rates were just how much they communicated with us during the process! When spending so much money it was nice to always know what was going on. After doing an FHA loan for our first home purchase, we opted for a conventional mortgage in our most recent transaction because we were able to come up with 20% down and avoid mortgage insurance entirely! It feels great to not pay mortgage insurance anymore!"

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