Conventional loans

A conventional loan is a mortgage that isn’t insured or guaranteed by a government agency. Most follow the guidelines set by Fannie Mae and Freddie Mac, and they can be used to buy a home or refinance one you already own.

Who this may suit

• Buyers and homeowners with steady, documented income
• People buying a primary home, a second home, or an investment property
• Homeowners looking to refinance into a different loan

Whether it fits you depends on your full picture. A licensed loan officer can compare it with other options, such as FHA, VA or USDA loans.

What we’ll review with you

• Your income and employment
• Your credit history
• Your savings and other assets
• The home you’re buying or refinancing, including its appraised value
• Your current debts and monthly obligations

Things to consider

• Your down payment affects your costs. With a smaller down payment, private mortgage insurance is usually required, and it can often be removed later as you build equity.
• Loan limits apply. Larger loan amounts may call for a jumbo loan instead.
• Qualification is based on underwriting guidelines, and not every applicant will qualify.
• Closing costs apply. Your loan officer will walk you through your Loan Estimate so you know what to expect.

Common questions

Is a conventional loan the same as a fixed-rate loan?

Not necessarily. Conventional loans come in fixed-rate and adjustable-rate options. Your loan officer can explain how each one works and which may suit your plans.

Can I use a conventional loan to refinance?

Yes. Conventional loans can be used to refinance an existing mortgage, whether to change your loan terms or, in some cases, to take cash out.

How do I know if I qualify?

The quickest way to find out is to talk it through. LOLA, our AI mortgage assistant, can gather your details and help you start your application, and a licensed loan officer will review your options with you.