Conventional Loan

Conventional Loan Advantages

Conventional Loan Disadvantages

A conventional loan is the loan for you if:

Down Payment Guidelines

The minimum down payment is usually between 3% – 20%+ of the sales price.

 

The conventional 97 is the GSE’s response to FHA low down payment loans. The 97 loan offers a 3% down payment.

Conventional mortgage loans that the mortgage is greater than 80% loan to value (LTV) will require private mortgage insurance (PMI).

Private mortgage insurance is an insurance policy that compensates the lenders for any loss above 80% LTV.

2020 Conventional Loan Limits

Conforming Loan Limits 2019 1 – 4 Unit Housing in Contiguous U.S.

Units

1

2

3

4

Conforming Loan Limits 2020

$484,350

$620,200

$749,650

$931,600

High Balance Conforming Loan Limits 2020

$726,525

$930,300

$1,124,475

$1,397,400

For a list of the loan limits in your area click here:

Conventional & FHA Comparison Graph

Conventional Recap

For a list of the loan limits in your area click here:

Do you think you’re ready to apply for a mortgage?