Conventional Mortgage Options for First-Time and Repeat Buyers
Conventional Loans: Flexible Financing For Today’s Homebuyers
If you're exploring mortgage options, you've likely come across conventional loans—often referred to as conforming loans. These loans have grown in popularity due to their competitive interest rates and increasingly flexible qualification guidelines. They're especially appealing to first-time buyers with solid credit, but they can be a smart option for a wide range of borrowers.
What Is a Conventional Loan?
A conventional loan is a type of mortgage that is not insured or guaranteed by the federal government. Instead, it is backed by private lenders and typically sold to entities like Fannie Mae and Freddie Mac. While the idea of no government backing might sound intimidating, there's no hidden catch—these loans are simply supported through the private sector and conform to set standards.
How Do You Qualify?
To qualify for a conventional loan, borrowers must meet the criteria established by Fannie Mae or Freddie Mac. These include:
- Stable income and employment
- Proof of adequate assets for a down payment and closing costs
- A satisfactory credit history
- A debt-to-income ratio within the allowable limits
It’s worth noting that loan standards can vary by lender, location, and market conditions, so working with an experienced lending team—like Fairview Lending—can help you determine your eligibility and options.
Advantages of a Conventional Loan
Conventional loans offer several benefits over government-backed loans, including:
- Loan limits up to $766,550 (and higher in certain high-cost areas)
- No upfront mortgage insurance premium (unlike FHA and VA loans)
- Private Mortgage Insurance (PMI) may be avoided with a 20% down payment
- More property types accepted
- Access to numerous private lenders
- Lower monthly PMI compared to FHA loans
- Conventional 97 program available with just 3% down
In short, conventional loans can be a cost-effective solution for borrowers who plan to stay in their home short-term or those looking to avoid extra insurance fees. Many adjustable-rate options also offer ultra-low initial interest rates, which can mean significant savings—especially if you plan to sell or refinance before the rate adjusts.
Conventional loans remain a popular and practical choice for both first-time and repeat homebuyers. With today’s low rates and a variety of down payment options, qualifying might be easier than you think. At Fairview Lending, we’re here to help you determine whether a conventional loan is the best fit—or explore other financing options that meet your goals.
Contact our team today for a free eligibility review and personalized loan guidance.
Backed By Private Lenders
Conventional loans are funded by private institutions and typically follow the lending guidelines set by Fannie Mae and Freddie Mac, offering flexibility without government insurance requirements.
Low Down Payments
With as little as **3% down** through programs like Conventional 97, qualified buyers can purchase a home without needing a large upfront investment. A 20% down payment eliminates PMI entirely.
Let Fairview Guide You
Whether you're buying your first home or upgrading to your next, conventional loans work for a wide range of property types and borrower situations, making them one of the most popular loan choices in the U.S.
- Dedicated To Exceeding Your Expectations
Benefits of Conventional Loans
Conventional loans offer flexibility, competitive interest rates, and a variety of options that make them an attractive choice for both first-time and experienced homebuyers. Unlike government-backed loans, conventional loans are funded through private lenders and can be tailored to meet your financial goals. Here are some of the top advantages:
- Low down payment options — As little as 3% down with programs like Conventional 97
- No upfront mortgage insurance premium — Unlike FHA or VA loans
- Private Mortgage Insurance (PMI) can be removed — PMI is cancelable once you reach 20% equity
- Broad property eligibility — Financing available for single-family homes, condos, second homes, and more
- Flexible loan terms — Choose from fixed or adjustable rates to suit your timeline and goals
- Higher loan limits — Up to $766,550 in most areas (and more in high-cost markets)
