Current conventional guidelines, updated from one source.
One guideline source feeds every number here, and the page updates when the source does. These are purchase and refinance parameters; the leverage table underneath covers occupancy by occupancy, and the status lines cover insurance, gifts, and the first-time-buyer programs.
First-time buyer; 5% standard; 97% loan-to-value at the top
The agencies set the floor at 3% down for a first-time buyer and 5% for a repeat buyer, on a principal residence; the whole down payment may be a gift from a relative on a one-unit home, and twenty percent down removes mortgage insurance from the payment entirely.
Priced on the score; no agency minimum with an automated approval
The wholesale programs behind these pages start at a 620 decision score. The agencies themselves set no minimum for an automated approval and ask for 620 on a manually underwritten fixed-rate loan and 640 on an adjustable; the score prices the loan and the insurance more than it gates them.
Required above 80% LTV; removed at 80% by request, 78% automatically
Above 80% loan-to-value the loan carries private mortgage insurance; at or below it, none. The insurance cancels on request at 80% of the original value and automatically at 78%, which is the single largest structural difference from FHA, whose premium at full leverage lasts for the term.
With an automated approval; 36% to 45% on a manual file
An automated approval allows a total debt-to-income ratio up to 50%; a manually underwritten file is held to 36%, or 45% when the credit score and reserves meet the agencies’ matrix. The ratio is measured on the total housing payment plus every other monthly obligation against gross income.
| Purpose | Occupancy and program | Maximum LTV |
|---|---|---|
| Purchase | One-unit principal residence, first-time buyer (fixed rate) | 97% |
| Purchase | One-unit principal residence, standard | 95% |
| Purchase | HomeReady / Home Possible (income limits apply) | 97% |
| Purchase | Two- to four-unit principal residence | 95% |
| Purchase | Second home | 90% |
| Purchase | Investment property, one unit | 85% |
| Purchase | Investment property, two to four units | 75% |
| Refinance | Limited cash-out (rate-and-term), one-unit principal residence | 95% |
| Refinance | Cash-out, one-unit principal residence | 80% |
| Refinance | Cash-out, two to four units, second home or investment | 75% |
| Combined LTV | Maximum contribution |
|---|---|
| above 90 percent | 3% of the sales price |
| 75.01 to 90 percent | 6% of the sales price |
| 75 percent or less | 9% of the sales price |
| investment property (any) | 2% of the sales price |
| Event | Waiting period |
|---|---|
| Chapter 7 or 11 bankruptcy | four years from discharge or dismissal (two years with documented extenuating circumstances) |
| Chapter 13 bankruptcy | two years from discharge; four years from dismissal (two with extenuating circumstances) |
| Multiple bankruptcy filings | five years when more than one filing within the past seven years |
| Foreclosure | seven years (three with extenuating circumstances, then limited to a principal residence or second home at 90 percent LTV, purchase or limited cash-out) |
| Deed-in-lieu, short sale or mortgage charge-off | four years (two with extenuating circumstances) |
Mortgage insurance: Fannie Mae reports that private mortgage insurance typically ranged from 0.58%–1.86% of the loan amount a year; the premium on a specific loan is priced by the insurer on the score, the leverage, and the coverage, and is never quoted here. Gifts from relatives may fund the entire down payment on a one-unit principal residence. HomeReady and Home Possible lend to 97% with income at or below 80% of the area median; HomeOne lends to the same leverage with a first-time buyer and no income limit.
Current conventional snapshot · updated October 1, 2026 · principal residences occupied within sixty days, second homes, and one- to four-unit investment properties · conforming limits apply by county and are confirmed by a Lendmire loan officer · above the limit, see the jumbo program · no prepayment penalty · Lendmire is a broker, never the lender.
Program guidelines only, not an offer of credit. The leverage, credit floor, mortgage insurance thresholds, ratio maximums, contribution caps, and waiting periods on this page are agency parameters and lender overlays subject to change without notice and to full underwriting of the borrower and the property. Mortgage insurance premiums are priced by the insurer and are not quoted here. Lendmire is a broker, not a lender. Licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
A conventional loan is a mortgage written to the rules of Fannie Mae and Freddie Mac so a lender can sell it to them after closing. Those rules decide the leverage by occupancy, the credit standard, the insurance above the threshold, and the ratios, and the four cards below take a Livonia file apart along exactly those lines.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Michigan; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
The agencies lend most on a home the borrower lives in and less as the occupancy changes: a one-unit principal residence reaches the top leverage, with the first-time buyer’s minimum the lowest down payment in the program; two- to four-unit homes, second homes, and investment properties step down from there, as the table in the snapshot shows for a Livonia buyer.
Credit scores and automated underwriting
Conventional credit is priced more than it is gated. The agencies set no minimum score for a loan their automated system approves, the wholesale programs set a floor, and above the floor the score sets the loan-level price adjustments and the mortgage insurance premium. A Livonia buyer with a stronger score pays less on both lines.
Mortgage insurance that cancels
The federal cancellation rules are the quiet advantage of a conventional loan. The borrower can ask to drop the insurance when the balance reaches the request threshold, the servicer must drop it at the automatic threshold, and it cannot outlast the midpoint of the term. On an FHA loan at full leverage the premium stays for the life of the loan.
Ratios, reserves, and the DU finding
Reserves are measured in months of the total housing payment and set by the finding, the occupancy, and the number of financed properties; a Livonia second-home or investment file carries more than a principal residence. Income needs a two-year history and a reasonable expectation of continuing.
A lender runs the same math on a Livonia file with one difference: the insurer’s actual premium replaces the estimate. The estimate here starts at the low end of the published range and is editable, because the real figure depends on the score and the leverage.
Where Livonia buyers borrow — and how a conforming loan fits.
Start with the market, then the file. The Livonia figures below set the backdrop for a conventional purchase: who owns, what homes are worth on the latest estimate, and what households earn, which together decide what a first-time buyer’s down payment and payment look like locally.
Citywide figures provide general market context, not an appraisal or an income calculation. Income sets the ratio, value sets the loan and the premium, and the down payment sets the leverage. The Census describes the first two for the market; the file supplies all three for the borrower.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Livonia neighborhoods, distinct conventional files.
Six Livonia neighborhoods, six versions of the same program: the cards below describe the housing stock, the price range, and the conventional question that comes up most often in each.
Established close-in neighborhoods
Renovated and unrenovated homes sit side by side in Livonia’s established neighborhoods, and the appraisal values each on comparable sales. The leverage, the insurance, and the ratio do not change with the age of the house. Roughly 33,424 Livonia households own their homes on the latest Census estimate — 87% of all households, the pool a conventional purchase joins.
Newer infill and recent construction
On recent construction in Livonia the appraisal is usually uneventful and the arithmetic decides: whether the loan fits under the conforming limit, and whether the ratio carries the price once the insurance is added at the leverage chosen. Median household income in Livonia sits near $98,460 on the latest Census estimate.
Two-to-four-unit homes
Livonia duplexes and small apartment houses are conventional purchases at the multi-unit leverage in the snapshot when the buyer occupies one unit, with rent from the other units counted toward qualifying under the agencies’ rules. The median owner-occupied home value in Livonia runs near $281,100 on the latest Census estimate.
Condominiums and townhomes
Townhomes in Livonia finance like houses when they are fee simple and like condominiums when they are organized as one; the lender settles which before the appraisal, and the leverage follows the occupancy either way. On a home at Livonia’s median value, the first-time buyer’s minimum down payment comes to about $8,400 and the standard minimum to about $14,100 — before closing costs, and before the mortgage insurance that comes with either.
Higher-value homes
The higher-value Livonia file is a limit question, not an eligibility question. The conforming limit caps the loan amount, and the buyer either adds down payment to fit under it or chooses the jumbo route for the whole purchase. About 13% of Livonia’s households rent — roughly 4,924 renter households on the latest Census estimate.
Investor and second-home purchases
An investor buying a Livonia unit to rent uses the conventional program at the investment leverage, documents the rent the agencies allow, and shows reserves for every financed property; the agencies cap how many such loans one borrower may carry. Livonia counts a population near 94K within the Detroit-Warren-Dearborn, MI area.
Each Livonia submarket has its own property story, and the appraisal and the project review are where that story is told. The leverage limits, the cancellation rules, and the automated finding are the constants.
Four ways Livonia buyers put a conforming loan to work.
Because the agencies buy loans on principal residences, second homes, and investment property alike, the conventional loan is a program a Livonia household can use for every home it owns. Four examples follow.
Buy a second home
For the Livonia vacation or weekend home, the conforming loan is usually the only consumer route: FHA and VA finance principal residences only. The down payment is larger, the reserves are deeper, and the score prices the loan the same way it does on any conventional purchase.
Buy a first home at the first-time-buyer minimum
A Livonia buyer who has not owned a home in three years qualifies for the program’s smallest down payment on a one-unit principal residence with a fixed rate; the down payment can be a gift from a relative, the seller can pay closing costs within the cap, and the insurance cancels as equity grows.
Buy an investment property
Investment property on a conforming loan is a common entry point for Livonia landlords: one to four units, a down payment set by the leverage table, rental income counted under the agencies’ rules, and a cap on how many financed properties one borrower may hold.
Refinance or take cash out
The conventional refinance fits a Livonia owner who wants a different term, a different structure, or cash from equity; each has its own leverage, and a cash-out refinance generally needs six months of ownership. A home equity line that leaves the first mortgage alone is the comparison worth running.
Estimate the payment on a Livonia price before requesting a quote.
This is what a Livonia conventional purchase costs each month at the leverage you choose, with the insurance shown as a separate line and then removed: the calculator finds the month on the schedule when the balance reaches the request threshold and the automatic one, and shows the payment on each side. The rate shown is the weekly Freddie Mac average, editable, and not a quote.
Livonia conventional payment estimate
Seeded at Livonia’s median value with the first-time buyer’s minimum down; every field updates the result as you type.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a conventional loan quote.
Estimate seeded at the low end of Fannie Mae’s published range (0.58%–1.86% a year); the insurer prices the actual premium on the score and the leverage. Applies only above 80% loan-to-value.
Illustrative starting assumptions: a $280,000 price near Livonia’s median owner-occupied home value, the first-time buyer’s minimum down payment, a thirty-year term at the current Freddie Mac benchmark, mortgage insurance at the low end of Fannie Mae’s published range, property taxes and insurance estimated for Michigan (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a conventional loan quote; your rate is set by the lender at lock. The mortgage insurance figure is an editable estimate seeded from Fannie Mae’s published typical range, not a premium quote; the insurer prices the actual premium, and the cancellation month assumes scheduled payments with no extra principal and no change in value. Taxes, insurance and dues are editable estimates; closing costs are not included. Conforming loan limits apply by county. Licensed in sixteen states for consumer mortgages.
Same buyer, three very different closings.
The score, the down payment available, VA eligibility, and the expected length of the loan decide which program wins. Here are the three, one next to the other.
Conventional, FHA, or VA.
A low down payment for the first-time buyer, insurance priced on the score and removed once the balance falls below the threshold, no upfront premium, and, of the three programs compared here, the one that finances second homes and investment property. The cost is a credit standard that prices a weak score heavily.
FHA’s leverage is high and its credit standard is forgiving, but its insurance is priced by schedule rather than by score and does not cancel on a full-leverage thirty-year loan. A Livonia buyer comparing the two sees the premium line stay on FHA and disappear on conventional. See Lendmire’s FHA loan program.
For an eligible veteran, service member, or surviving spouse, the VA loan removes the down payment and the monthly insurance entirely in exchange for a one-time funding fee that many disabled veterans do not pay. Where eligibility exists, it usually beats conventional for a Livonia principal residence; conventional still wins the second home and the rental. See Lendmire’s VA loan program.
Choose by profile: a strong score and any down payment point to conventional; a modest score and a small down payment point to FHA; eligibility with full entitlement points to VA. A Livonia loan officer runs all three on the same numbers before recommending one. Above the conforming limit, see the jumbo loan program.
What to prepare for a Livonia scenario review.
Gather these before a Livonia review: the ordinary mortgage documents, plus the pieces that settle the first-time-buyer question and the occupancy.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated underwriting finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
The percentages tell only part of the story. What a Livonia conventional loan actually becomes depends on the score, the appraisal, the project review, and the automated finding, and these are the details that move it.
Use these checks to keep the Livonia file clean and fundable.
Three things to settle before a Livonia review: how the mortgage insurance will be structured and when it ends, where the decision score lands and what it prices, and whether the property has any agency question attached.
- Plan the insurance: twenty percent down carries no insurance at all.
- Confirm the score: a self-pulled score can differ from the decision score.
- Mind the ratios: the total ratio includes the insurance while it applies.
Mortgage insurance: how much, and until when
The premium on a Livonia loan can be paid monthly, by the lender in exchange for a different price, as a single premium at closing, or split; the monthly structure cancels under the federal rules, and the others are priced by the lender. The calculator shows the monthly structure and the month the thresholds arrive on scheduled payments.
The score sets the cost
The decision score is read from the lender’s report, and with more than one borrower the automated system uses the average of the median scores. On a Livonia conventional file the score rarely ends eligibility, but it sets the loan-level adjustments and the insurance premium, so a difference of a few points can change the monthly cost.
Ratios, reserves, and the finding
The total ratio counts the full housing payment, insurance included, plus every other obligation, against gross income, up to the automated ceiling in the snapshot; a manual file is held to the lower pair. The finding also sets the reserves, and a Livonia buyer with other financed properties carries more of them.
Seller contributions and the down payment
Two rules shape the Livonia contract: the contribution cap, which falls as the leverage rises, and the source rules for the down payment, which allow a full gift on a one-unit principal residence and require a share of the buyer’s own funds on second homes and multi-unit homes above the threshold.
Occupancy and its leverage
Each occupancy has its own leverage limit and its own loan-level adjustments: a principal residence occupied within sixty days of closing reaches the top of the table, a second home sits lower, and an investment property lower still. A Livonia buyer who states one occupancy and uses another has misrepresented the loan.
From a Livonia pre-approval to keys in hand.
A conventional purchase runs in a fixed order: pre-approval through the automated system on the score, the ratio, and the reserves; contract and appraisal or value acceptance; underwriting that verifies what the finding assumed; and closing with the insurance structure set. Here is that order for a Livonia buyer.
Pre-approval
Start with the score, the income, the down payment, and the occupancy. A Lendmire loan officer runs the automated system, confirms the leverage and the insurance for the down payment chosen, checks the loan against the conforming limit, compares the structure with FHA and VA on the same numbers, and provides the terms in writing.
Contract and appraisal
The appraisal is a valuation first and a condition report second on a conventional file; a short value re-sizes the loan, and the Livonia contract is adjusted or released under its contingency. Where the system offers value acceptance, the step collapses to the system’s figure.
Underwriting
Underwriting on a Livonia conventional file is a verification of the finding: the documents behind the income and assets, the source of the down payment, the project review, and the insurance commitment for the leverage. Conditions are cleared and the approval is issued with its terms.
Closing
The Livonia closing applies the program’s structure: the insurance premium in the payment while it applies, the escrow account, and no upfront premium. The buyer moves in within sixty days on a principal residence, and the servicer tracks the balance toward the cancellation thresholds.
A brokerage that prices the whole market.
A single lender prices a conventional loan one way; a brokerage with several wholesale programs prices it several ways and shows a Livonia buyer which one costs less on the same score and leverage, with the insurance quoted by the insurer rather than guessed.
Several programs, one set of numbers
The comparison printed on this page is run for real on every Livonia file: conventional with the insurer’s actual premium beside FHA with its premiums beside VA where eligibility exists, and the written terms follow from it.
The insurance explained before the offer
No Livonia buyer should learn at the closing table what the insurance costs or how long it lasts. The loan officer walks through the premium for the leverage chosen, the month the thresholds arrive on scheduled payments, and the alternative of a larger down payment.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the Livonia home is in, delivers the disclosures a consumer mortgage requires, and commits the terms to paper. The program figures on this page are read from one guideline source built on the agencies’ published guides.
Trusted by buyers & families alike.
Livonia conventional loan FAQs
Plain answers to the questions Livonia buyers ask most about conventional loans, in the order they usually ask them.
What is a conventional loan, and who is it for?
The general-purpose mortgage: conforming to the agencies’ guides, priced on the credit score, insured privately only while the leverage is above the threshold. It is the program most Livonia buyers compare first and, of the three compared here, the one that reaches a second home or an investment property.
How much do I need to put down on a conventional loan in Livonia?
A small share of the price for a first-time buyer, a little more for a repeat buyer, and twenty percent to skip the insurance. On a Livonia home at the median value the market section shows what the minimums come to in dollars.
What credit score do I need for a conventional loan?
The snapshot shows the floor. More useful than the number is what sits around it: a seasoned derogatory event is inside the rules after its waiting period, a thin file may need manual underwriting with tighter ratios, and the score drives the insurance premium on a Livonia loan.
How does private mortgage insurance work, and when does it end?
Mortgage insurance applies when the loan runs above the leverage threshold in the snapshot and is paid monthly as part of the payment. The premium is priced by the insurer on the score and the leverage, inside the published range the snapshot shows. Under the Homeowners Protection Act the borrower may request cancellation at the request threshold on the original value, the servicer must terminate it automatically at the termination threshold, and it ends no later than the midpoint of the term.
What is the conforming loan limit in Livonia?
Ask a loan officer for the county’s current limit; it changes yearly and by unit count. Above it, a Livonia purchase is still possible with a larger down payment on a conforming loan or on a jumbo loan.
Can I take cash out with a conventional refinance?
A conventional cash-out refinance replaces the first mortgage with a larger loan at the cash-out leverage and hands over the difference. A Livonia owner with a low-balance first mortgage usually compares a second lien first.
What does the appraisal check on a conventional loan?
The value and the general condition. A conventional appraisal is lighter on condition than a government appraisal, and a short value re-sizes the loan on a Livonia file; the buyer brings the difference, renegotiates, or releases the contract under its contingency.
What debt-to-income ratio does a conventional loan allow?
Two ceilings: the higher one for automated approvals, the lower pair for manual underwriting. The housing payment counted includes the insurance while it applies, which is why cancellation lowers the ratio as well as the payment.
What are HomeReady, Home Possible, and HomeOne?
They are the agencies’ affordable programs: the same conforming loan with the top leverage, lower insurance coverage, and in two cases an income limit. A Livonia buyer who qualifies usually pays less than on the standard conventional structure at the same leverage.
Can the seller pay my closing costs on a conventional loan?
They can, and the cap depends on the leverage: more room at lower leverage, less at higher. That is how many Livonia conventional purchases close with cash to close near the down payment alone.
The Livonia conforming file, priced across the market and explained plainly.
Ask for a Livonia scenario review to confirm the leverage, the insurance and its exit, and the loan the program supports. Lendmire is a broker licensed in sixteen states for consumer mortgages and is never the lender.
This guide covers Livonia — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Michigan, part of Lendmire’s conventional loan program.
Nearby markets in Michigan: Detroit · Warren · Sterling Heights · Lansing · Grand Rapids
Related programs: FHA Loans · Jumbo Loans · Refinance Loans