The Workhorse Of American Mortgages.
A conventional loan is any mortgage not insured or guaranteed by a government program. The most common kind — what people mean when they say “conventional” — is a conforming loan that meets the underwriting and loan-limit standards of Fannie Mae and Freddie Mac. For qualified borrowers, that combination of standardization and competitive pricing is hard to beat.
- As little as 3% down through Fannie Mae HomeReady and Freddie Mac Home Possible — programs most lenders never bring up.
- No upfront mortgage-insurance premium, unlike FHA. Monthly PMI drops off automatically at 78% LTV.
- Strongest long-term pricing for borrowers with credit above 740 and stable income documentation.
- Up to 97% LTV on primary residences; up to 95% on second homes; up to 85% on investment property with strong files.
- Single-close lot-and-construction options for buyers building from the ground up.
- Streamlined refinance programs once you’ve built equity — including no-cost rate-and-term refi structures.
Best Fit Profiles.
- Borrowers with credit scores above 680 and clean payment history
- W-2 earners with 24+ months of stable employment
- Self-employed borrowers with two years of tax returns showing sustainable income
- Buyers planning to put down 20%+ to avoid PMI altogether
- Investors purchasing 1–4 unit properties as primary or income-producing assets
How We Structure The File.
Credit Engineering
Before we even pull a hard credit report, we model the rate impact of small score changes in the 720 / 740 / 760 / 780 tiers. Sometimes a 30-day plan to lift you one tier saves you $14,000 over the loan’s life. We tell you when it does.
PMI Strategy
Lender-paid mortgage insurance. Borrower-paid mortgage insurance. Split-premium. Single-premium. Every conventional file is a calculation between these, and the right answer depends on how long you plan to hold the loan. We model all four for you.
Float-Down Lock
Lock the moment your file is clean. If the rate market drops before close, we re-lock you lower at no charge. Our written policy beats nine out of ten retail bank desks.
Investor / Second-Home Layering
Pricing on investor and second-home loans gets thicker the more risk a file carries. We layer reserves, asset documentation, and rate-sheet selection to land your file in the cleanest pricing bucket the program allows.