Conventional Loan Programs

Conventional loan programs give borrowers many option for current homeowner and homebuyer. Fannie Mae® and Freddie Mac®  were created by the Government to purchase these loans. Everyone from first time homebuyers to real estate investors can take advantage of the conventional loan programs. If you are looking for a 2nd home, investment property or a new primary residence then you should consider using a conventional loan. The wide range of refinance options give you the tools you need to lower payments, take cash out, change loan terms, pay off debt or make renovations. 

Credit FICO Score of 620

No Installment Payment lates in last 12months

No Bankruptcy in last 4 years * 

No Foreclosures in last 7 years *

2 year of Employment History in the same field of work

Self Employed allowed

Social Security Income Allowed

Long Term Disability Income Extending At Least 3-Years Allowed

Debt To Income Ratio at or under 43% (up to 50% in some cases )

  • Funds to Cover Down Payment

  • Funds to cover Mortgage Reserves if required
  • Funds to cover Closing Costs
  • Final Loan Amount must be at or under county loan limit
  • Primary Residence, Second Homes and Investment properties

  • Allowed Property Types- Single Family Homes, Condo’s, Townhomes, PUD, 1-4unit and Manufactured* 

Conventional Program Information

The Conventional Purchase Loan Program can go through Fannie Mae or Freddie Mac and offers a loan that requires a down payment of 5%, credit score of 620, DTI up to 50%, wide range of amortization terms and max loan limit depends on the County. Primary Residences, Second Homes and Investment properties are allowed. 2nd home or investment properties require a minimum of 20% down. 

The Conventional Rate Term Refinance Loan Program can go through Fannie Mae or Freddie Mac and offers a loan that requires at least 5% equity in the house, credit score of 620, DTI up to 50%, wide range of amortization terms and max loan limit depends on the County. You can lower your rate, change your loan terms and get up to $2000 cash back. 2nd homes and Investment properties require 20% equity. 

Conventional Cash Out Refinance Loan Program can go through Fannie Mae or Freddie Mac and offers a loan that requires at least 10% equity in the house, credit score of 620, DTI up to 50%, wide range of amortization terms and max loan limit depends on the County. You can lower your rate, change your loan terms, pay off debt and get cash back. 2nd homes and Investment properties require 20% equity. 

The Conventional High Balance Refinance Loan Program can go through Fannie Mae or Freddie Mac and is for loans that go over the standard County Loan Limits. The program requires at least 5% equity in the house, credit score of 620, DTI up to 50%, wide range of amortization terms and max loan amount depends on the county. You can lower your rate, change your loan terms and get up to $2000 cash back. 2nd homes and Investment properties require 20% equity. 

The Fannie Mae (FNMA) HomeReady®  Conventional Purchase program has the lowest down payment at only 3%, Debt to income up to 50%, credit score as low as 620, primary residence only and loan limit depends on the County. HomeReady does have income level limits and First time homebuyers are required to complete the Fannie Mae homeownership education course.  

The Fannie Mae (FNMA) HomeReady® Conventional Rate Term Refinance program requires 3% equity, Debt to income up to 50%, credit score as low as 620, primary residence, 2nd homes and loan limit depends on the County. You can lower your rate, change terms and get up to $2000 cash back. First time homebuyers required to complete the Fannie Mae homeownership education course. 

The Freddie Mac Home Possible® Conventional Purchase program has the lowest down payment at only 3%, Debt to income up to 50%, credit score as low as 620, primary residence only and loan limit depends on the County. Home Possible® does have income limits.

 Click Here for the Freddie Mac Income and Property Eligibility Tool 

The Freddie Mac Home Possible® Conventional Rate Term Refinance program only requires 3% equity, Debt to income up to 50%, credit score as low as 620, primary residence only and loan limit depends on the County. Home Possible® does have income limits.

Click Here for the Freddie Mac Income and Property Eligibility Tool 

Tools

Use this interactive map provided by Fannie Mae to check the loan limits in your area. 

This PDF will show you the Fannie Mae and Freddie Mac loan limits by County