Conventional Loan

Conventional loans, also known as “conforming loans,” are insured by Fannie Mae and Freddie Mac, and have varying loan limits based on the property’s location (please see Understanding Conforming Loan Limits for more details and a link to the FHFA county loan limit map).

Conventional loans require PMI (Private Mortgage Insurance) if the loan to value exceeds 80%, however you may be able to obtain a conventional loan without PMI with less than 20% down if a subordinate lien is obtained.

For example, a 90% combined Loan to Value also known as an 80-10-10. This would be an 80% first lien, a 10% second or subordinate lien and a 10% down payment from the borrower.

There are many different options with or without PMI so talk to your loan originator to discuss the right choice for you.

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