Conventional Loan Programs

The classic mortgage: one locked interest rate and one predictable monthly principal and interest payment for the entire term — 10, 15, 20, 25, or 30 years. With a fixed-rate loan, your rate does not change as market conditions rise or fall, giving you long-term stability and helping you budget with confidence.

This option is especially well suited for buyers who plan to stay in the home for several years, want protection from rising rates, and prefer a straightforward loan structure with consistent payments from the first month through the final payment. Depending on your goals, a shorter term may help you build equity faster and pay less interest over time, while a longer term may offer a lower monthly payment and greater flexibility in your monthly budget.

Start with a lower fixed rate for the first 5, 7, or 10 years, then the rate adjusts every six months with built-in caps that limit how much the interest rate can increase at each adjustment and over the life of the loan.

A Conventional ARM can be a smart option for buyers who want a lower initial payment, expect their income to increase, or plan to sell, refinance, or move before the fixed-rate period ends. During the introductory period, the payment remains predictable, which can make it easier to qualify or manage monthly cash flow. After that period, the rate may move up or down based on market conditions, so this loan is best suited for borrowers who understand the adjustment schedule and are comfortable with the possibility of future payment changes.

For homes in FHFA-designated high-cost counties, a High-Balance Conventional Loan allows qualified borrowers to finance loan amounts above the standard conforming baseline, up to the applicable high-cost county limit for a one-unit property in 2026, while still following conventional conforming pricing and guidelines.

This option can be helpful for buyers purchasing in areas where home prices exceed standard loan limits but who still want the structure, flexibility, and potential cost advantages of conventional financing. High-balance loans may be available with fixed-rate or adjustable-rate terms, and they are often used by borrowers with strong credit, stable income, and the ability to meet higher loan amount requirements.

Financing above the conforming loan limit for luxury, high-value, and unique properties where the purchase price exceeds standard conventional loan limits. A Jumbo Conventional Loan can provide larger loan amounts, often into the millions, while offering competitive fixed-rate and adjustable-rate options for well-qualified borrowers.

Because jumbo loans are not backed by the same conforming loan limits, lenders typically review credit history, income stability, assets, reserves, debt-to-income ratio, and overall financial strength more closely. This option is best suited for buyers with strong credit, reliable income, and the ability to meet larger down payment or reserve requirements who want flexible financing for a higher-priced primary residence, second home, or investment property.

Build your dream home with a Conventional Construction-to-Perm Loan that combines the construction phase and permanent mortgage into one streamlined financing solution. Instead of closing on separate construction and long-term loans, you complete one closing, pay one set of closing costs, and use scheduled construction draws to fund the building process as work is completed.

Once the home is finished and final inspections are complete, the loan automatically converts into your permanent conventional mortgage. This option is best suited for borrowers building a primary residence or qualifying property who want a simpler path from lot preparation and construction through long-term home financing.

The HomeReady® Loan from Fannie Mae is designed to help low- to moderate-income borrowers purchase a home with as little as 3% down and reduced mortgage insurance compared with many standard conventional options. Borrowers may be able to use flexible sources of funds, including gifts, grants, community assistance programs, and eligible boarder income, which can make it easier to qualify.

This program is especially helpful for first-time buyers, repeat buyers, and families purchasing in communities where affordability is a priority. It is best suited for borrowers who meet income eligibility requirements and want a conventional loan with lower upfront costs and more flexible qualification features.

The Home Possible® Loan from Freddie Mac is a 3% down conventional option created for low- to moderate-income buyers who want an affordable path to homeownership. It may offer discounted mortgage insurance, flexible down payment sources, and opportunities to use gifts, grants, employer assistance, or other approved funds to help cover the required investment.

In some cases, sweat equity may also be considered, giving qualified borrowers more ways to complete the purchase. This loan is best suited for buyers who meet area median income requirements and want a conventional mortgage with low down payment options and borrower-friendly flexibility.

The HomeOne® Loan from Freddie Mac allows eligible buyers to purchase a home with as little as 3% down, with no income limits and no geographic restrictions. At least one borrower must be a first-time homebuyer, making this a strong option for buyers who have stable income but have not yet saved a large down payment.

Because it is a conventional loan, borrowers may benefit from familiar underwriting standards, competitive pricing, and the ability to build equity through homeownership. This loan is best suited for first-time buyers, including higher earners, who need a low down payment option without the income limits found in some affordable lending programs.

The Conventional 97% LTV Loan, also known as Fannie Mae's Standard 97 program, allows eligible borrowers to purchase a home with only 3% down using a fixed-rate conventional mortgage. At least one borrower must be a first-time homebuyer, and the full down payment may be able to come from gift funds, making it easier for qualified buyers to move forward without a large amount of savings.

This loan can be a strong fit for buyers who want the benefits of conventional financing, stable fixed payments, and a low upfront investment. It is best suited for first-time buyers purchasing an eligible primary residence who want a simple, low down payment conventional option.

An Investment Property Conventional Loan can help borrowers build long-term wealth by financing rental properties, second income streams, or real estate portfolio growth. Qualified buyers may be able to purchase a single-unit rental with as little as 15% down, while two- to four-unit properties may require a larger down payment, and projected rental income may help support qualification when allowed by guidelines.

Fixed-rate and adjustable-rate options may be available depending on the borrower's goals, cash flow strategy, and investment timeline. This loan is best suited for buyers who want to purchase or refinance non-owner-occupied property and are prepared for investment property pricing, reserve requirements, and rental income documentation.

A Second Home Conventional Loan is designed for borrowers purchasing or refinancing a vacation home, seasonal residence, or personal-use property separate from their primary home. Eligible buyers may be able to finance a second home with as little as 10% down, and pricing is generally more favorable than investment property financing when the home is primarily for personal use.

This option can be a good fit for buyers looking for a beach property, mountain retreat, family getaway, or part-time residence in markets such as Florida or California. It is best suited for borrowers with stable income, strong credit, and the ability to manage the expenses of an additional property while meeting second-home occupancy and use requirements.

A Conventional Cash-Out Refinance Loan allows homeowners to turn built-up home equity into cash while replacing their current mortgage with a new conventional loan. The funds may be used for debt consolidation, home improvements, education expenses, investment opportunities, emergency reserves, or other financial goals.

Qualified borrowers may be able to access equity up to the allowable loan-to-value limit for the property type and occupancy, often up to 80% of a primary home's value. This option is best suited for homeowners who have sufficient equity, want to restructure their mortgage, and prefer the flexibility of using cash proceeds for larger financial priorities.

The HomeStyle® Renovation Loan from Fannie Mae lets borrowers buy or refinance a home and finance eligible improvements with one conventional mortgage based on the property's after-improved value. Funds may be used for many permanent upgrades, including kitchens, bathrooms, additions, flooring, energy improvements, outdoor features, and even certain luxury enhancements when allowed by guidelines.

This program can be helpful for buyers purchasing a home that needs updates or homeowners who want to improve their current property without taking out a separate renovation loan. It is best suited for borrowers who want one loan, one closing, and a structured renovation process that supports both the property purchase or refinance and the planned improvements.

The CHOICERenovation® Loan from Freddie Mac allows borrowers to finance a home purchase or refinance along with eligible repairs, improvements, or renovations in a single conventional mortgage. This program can be used for updates that improve comfort, functionality, safety, efficiency, or long-term property value, and it may also support certain resilience upgrades designed to help protect homes against storms, flooding, and other weather-related risks.

By combining renovation costs into one loan, borrowers can avoid juggling separate financing and may be able to base the mortgage on the completed value of the home. This option is best suited for buyers or homeowners who want to modernize, repair, or strengthen a property through one streamlined renovation loan.

A Conventional Condo Loan can be used to purchase or refinance an eligible condominium unit with conventional mortgage terms, provided the condo project meets applicable review requirements. Lenders typically evaluate the project's budget, insurance coverage, owner-occupancy levels, litigation status, reserves, and overall warrantability to help determine whether the property qualifies.

In some cases, limited review options may be available for qualified borrowers and eligible projects, which can simplify the approval process. This loan is best suited for buyers or homeowners who want conventional financing for a condo and need guidance through both the borrower approval and condominium project review process.