Conventional Loan

This type of loan is not insured or guaranteed by the federal government, but it is a good choice for borrowers with good credit and funds for a larger down payment ranging from 5–20% of the home purchase price.Main advantages of conventional loans:

  • Conventional purchase may be used for primary, secondary, vacation or investment properties
  • There are no requirements for upfront mortgage insurance premiums or funding fees
  • Borrower has the right to cancel Private Mortgage Insurance (PMI) once their property reaches at least 80% loan-to-value ratio
  • If your home property has declined, you may be able to refinance up to 125% loan-to-value ratio through Home Affordable Refinace Program (HARP)