Conventional Purchase Loan
Most PopularBest For: Flexible Terms, Lowest Rates, Savvy Investors
Meet the most popular mortgage program. Flexible financing offering a wide range of attractive benefits to qualified homebuyers across the US.
Program Description
Conventional Loans are the most popular mortgage program in the United States due to their ubiquity and versatility. They are insured by private lenders instead of the federal or state government, like in the case of many other popular programs. While they often have higher credit score, income, and down payment requirements, Conventional Loans for purchasing a home offer a variety of attractive benefits to qualified buyers interested in a 10-30 year term.
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Conventional Purchase Loan
Min. Credit Score
620
Min. Down Payment
5%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Buyer establishes equity immediately
- Loans often processed quickly with less “red tape”
- Often makes for a more attractive offer to a home seller
- No prepayment penalties
- Higher credit score requirements
- Higher down payment requirements
- Conventional loan limits disqualify many borrowers who are seeking larger loan amounts
Program Availability
Conventional Purchase Loans are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
45.00%
Purchase Price Limit
No Limits
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Mortgage insurance not required with 20% or more down
- Available for second homes and investment properties
- Offers loan terms between 10 & 30 years, sociate
Additional Conditions
- Private mortgage insurance is not required with a down payment of 20% or more
- Some US Counties are considered "high cost" and have loan limits exceeding the limits shown here (see "High Balance Conventional Loans")
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is not required for this loan program.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this Conventional program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
San Antonio HIP 120 Existing Home
|ConventionalSan Antonio first time homebuyers of an existing home can receive up to $15,000 in down payment and closing cost assistance within the city limits.
Max. Loan Amount
$726,200
Min. Credit Score
620
Min. Down Payment:
0%
San Antonio HIP 120 New Construction
|ConventionalSan Antonio new construction first time homebuyers can receive up to $15,000 in down payment and closing cost assistance within the city limits.
Max. Loan Amount
$726,200
Min. Credit Score
620
Min. Down Payment:
0%
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
Conventional Rate-and-Term Refinance
Best For: Flexible Terms, Rate Reduction, Easy Process
Popular refinancing option for loan amounts under the conforming loan limit. Flexible qualification and attractive benefits to qualified homeowners.
Conventional Cash-Out Refinance
Best For: Flexible Terms, Rate Reduction, Easy Process
Popular cash-out refinancing option with flexible qualification guidelines for loan amounts under the conforming loan limit.
Related Resources
This is for Single-Income Homebuyers
The housing market is always changing, and today single-income homebuyers are quickly becoming one of the largest demographics to take part. While getting approved for a loan may take a bit more work for single applicants than those who are coupled or have dual incomes, it is certainly an attainable goal and often one that proves to be more affordable in the long run. Let's go over some of the things you'll want to prepare for as you begin your solo home buying journey.
Read More
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
PMI is an important part of getting a mortgage, but it can vary in cost. Learn about the different types and what you should consider when budgeting for it here.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
2023 Cash-Out Refinance Guide
Owning a home is a big investment and like with many long-term assets, it comes with a few added responsibilities. To keep your home appreciating in value and to make sure you continue to enjoy it, it's important to keep it maintained and updated.
Read More
A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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