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
Private mortgage insurance applies above 80% loan-to-value. Fannie Mae’s 2022 figures put the annual cost in a range of 0.58%–1.86%, depending on the score and the leverage. It ends by request at 80% of the original value, automatically at 78%, and no later than the midpoint of 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 credit score and reserves meet the agencies’ matrix. The ratio divides total housing payment plus other monthly obligations by 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 3, 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.
This page describes program parameters, not an offer. The down payment minimums, the credit floor, the insurance thresholds, and the ratios are agency guidelines and lender overlays, subject to change without notice and to full underwriting; the appraisal, the credit report, the property, the occupancy, and the conforming limit decide every file. 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 Hanover file apart along exactly those lines.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Pennsylvania; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
Leverage on a Hanover conventional loan is a table rather than a single number: purchase against refinance, principal residence against second home against rental, one unit against several. Each cell has its own maximum, a cash-out refinance sits below the purchase ceiling for the same occupancy, and the snapshot shows the whole table.
Credit scores and automated underwriting
Conventional credit is priced more than it is gated. The floor in the snapshot is the lowest score the lanes accept, and above the floor the score sets the loan-level price adjustments and the mortgage insurance premium. A Hanover 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
Three things decide what payment a Hanover income carries: the ratio ceiling for the underwriting path, the reserves the finding requires, and the stability of the income over two years. Enter income in the calculator to see the ratio on a local price before asking for a quote.
A lender runs the same math on a Hanover 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 Hanover buyers borrow — and how a conforming loan fits.
Conventional loans are sized against a local market, and these are Hanover’s numbers from the U.S. Census Bureau: how many households own, what a typical home is worth, and what households earn. Together they set the scale of a typical down payment, loan, and insurance premium.
Citywide figures provide general market context, not an appraisal or an income calculation. Read the figures as ranges, not predictions. The lender appraises one home, documents one income, and lets the automated system read one credit file.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Hanover neighborhoods, distinct conventional files.
Where Hanover buyers shop, and what the conforming file turns on in each place: the occupancy, the property type the appraiser sees, the project review it needs, and the price the ratio has to carry.
Investor and second-home purchases
An investor buying a Hanover 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. About 47% of Hanover’s households rent — roughly 3,482 renter households on the latest Census estimate.
Condominiums and townhomes
A Hanover condominium in an established project is a conventional file with the project review added. Established projects usually pass; new or investor-heavy ones draw questions, and a project that fails goes to a portfolio lender on different terms. Median household income in Hanover sits near $61,293 on the latest Census estimate.
Two-to-four-unit homes
Owner occupancy of one unit sets the leverage on a Hanover multi-unit conventional loan; without it, the property is an investment purchase at the lower investment leverage. The appraisal reads every unit and the rents. Roughly 3,987 Hanover households own their homes on the latest Census estimate — 53% of all households, the pool a conventional purchase joins.
Established close-in neighborhoods
Renovated and unrenovated homes sit side by side in Hanover’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. On a one-unit principal residence at Hanover’s median value, the first-time buyer’s minimum down payment comes to about $6,400 and the standard minimum to about $10,600 — before closing costs, and before the mortgage insurance that comes with either; a second home, a multi-unit home, or a rental starts higher, as the leverage table shows.
Newer infill and recent construction
New rows and recent infill in Hanover tend to appraise cleanly, so the loan amount is the question: a contract near the conforming limit is checked against the county figure before the offer, and a loan above it needs a larger down payment or the jumbo program. Hanover is home to about 17K people and sits within the York-Hanover, PA area.
Higher-value homes
A high-value Hanover purchase can still be a conforming loan when the loan amount fits under the county limit, and a high-cost county’s higher range extends that reach; above it, the jumbo program takes the file with its own leverage and reserves. The median owner-occupied home value in Hanover runs near $212,800 on the latest Census estimate.
Each Hanover 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 Hanover buyers put a conforming loan to work.
Hanover borrowers use conforming loans for reasons that repeat, from the first purchase at the first-time-buyer minimum to the refinance on a home with equity, and the cards below take up the ones that come up most often.
Buy a condominium in a warrantable project
A Hanover condominium is a conventional purchase when the project passes the agencies’ review: owner-occupancy mix, budget and reserves, litigation, commercial space, and ownership concentration. The dues enter the ratio, and the leverage follows the occupancy as it would on a house.
Buy a first home at the first-time-buyer minimum
The first purchase on a conventional loan starts at the first-time buyer’s minimum in the snapshot, with the whole amount allowed as a family gift. A Hanover buyer with a solid score may pay less each month than on FHA because the insurance is priced on the score and ends; the comparison is run on the actual numbers.
Buy an investment property
A Hanover investor buying one to four units on a conventional loan puts down what the leverage table shows for investment property, documents agency-allowed rent toward qualifying, and holds reserves the finding requires per financed property. It is an individual agency loan under investment-property rules, not an investor DSCR loan.
Buy a second home
Conventional financing is the consumer program that reaches a second home: a Hanover buyer brings the down payment the leverage table shows for that occupancy, qualifies on the full payment of both homes, and shows the reserves the finding requires. The home must be for the owner’s use, not a rental business.
Estimate the payment on a Hanover price before requesting a quote.
Enter a Hanover price, the down payment, and the buyer type, choose a term, and the calculator returns the loan and its loan-to-value, principal and interest, the estimated mortgage insurance while the loan is above the threshold, taxes and insurance, the payment after the insurance ends, and the ratio if you enter income. It also shows the month the balance reaches the cancellation thresholds. The rate field holds the weekly Freddie Mac benchmark as a market reference, never a quote.
Hanover conventional payment estimate
Use the Hanover defaults as a starting point and change the price, the down payment, the buyer type, the term, the insurance estimate, and the escrows to fit.
Editable benchmark: 7.28% as of October 1, 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 $215,000 price near Hanover’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 Pennsylvania (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 alternatives put the conventional loan’s cost in perspective: FHA charges a premium every month and an upfront premium at closing, VA charges a one-time fee, conventional charges a premium only until equity arrives. The comparison below is written for a Hanover buyer weighing all three.
Conventional, FHA, or VA.
Conventional fits the Hanover buyer with a solid score: the premium is smaller than FHA’s for strong credit and it ends, the monthly structure carries no upfront premium, and twenty percent down removes insurance altogether. A modest score or a thin file is where FHA competes.
FHA asks for a small minimum investment that a gift can cover, accepts a forgiving decision score, and charges an upfront premium plus an annual premium that lasts for the term at full leverage. For a Hanover buyer with a modest score it usually wins; for a strong score the conventional premium is smaller and temporary. See Lendmire’s FHA loan program.
VA beats conventional on the principal residence for nearly every eligible borrower; conventional beats VA on everything VA does not touch: second homes, rentals, and buyers without the certificate. The two often sit side by side in one Hanover household. See Lendmire’s VA loan program.
Conventional for the solid score, the move-up buyer, the second home, and the rental; FHA for the modest score and the small investment; VA for the eligible borrower buying a principal residence. The Hanover file is priced on all three before one is recommended. Above the conforming limit, see the jumbo loan program.
What to prepare for a Hanover scenario review.
What a lender reads on a Hanover conventional loan, and what you can have ready before anyone asks.
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.
A handful of details decide whether a Hanover conventional file closes as planned, closes at a different cost, or stalls. These are the ones that come up most.
Use these checks to keep the Hanover file clean and fundable.
Three things to settle before a Hanover 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: the premium is priced on the score and the leverage inside the published range.
- Confirm the score: the score sets the loan-level adjustments and the insurance premium more than it gates the loan.
- Mind the ratios: a manual file is held to the lower ratio pair.
Mortgage insurance: how much, and until when
Cancellation on request needs a good payment history, no subordinate liens, and no decline in value; automatic termination needs only that the loan be current. A Hanover owner whose home has gained value may also ask the servicer to recognize the current value under its own rules, which is a servicer decision rather than a program right.
The score sets the cost
The decision score comes from the lender’s report, and with multiple borrowers the automated system uses the average of the median scores. On a Hanover conventional file the score rarely ends eligibility, but it sets the loan-level adjustments and insurance premium, so a few points can change 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 Hanover buyer with other financed properties carries more of them.
Seller contributions and the down payment
A Hanover contract can shift most closing costs to the seller inside the cap for the leverage, which leaves the buyer bringing the down payment and little else. On second homes and two- to four-unit homes above the threshold, part of the down payment must be the buyer’s own funds.
Waiting periods after a credit event
The agencies season credit events rather than barring them: each bankruptcy chapter, a foreclosure, a deed-in-lieu, and a short sale carry their own period, shortened by documented extenuating circumstances. The snapshot table shows each one for a Hanover buyer planning the timing.
From a Hanover pre-approval to keys in hand.
Underneath, the Hanover process is any mortgage process; what makes it conventional is the automated finding, the project review where it applies, the leverage by occupancy, and the insurance threshold. Each step below says what happens and what the buyer does.
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
With the contract signed, the lender orders the appraisal, or accepts the value the automated system offers where a waiver applies. Seller contributions are checked against the cap for the leverage, and a condominium’s project documents are collected for review before the file moves on.
Underwriting
The underwriter verifies what the automated finding assumed: income, assets and reserves, credit and any seasoning, occupancy, and the property. A manual file follows the lower ratio pair instead. Conditions are issued, documented, and cleared before final approval.
Closing
The Hanover closing applies the program’s structure: the insurance premium in the payment while it applies, the escrow account, and no upfront premium on the monthly structure. 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.
Lendmire is a mortgage brokerage licensed for consumer lending in sixteen states, and on a conventional loan that buys three things: the file priced across several wholesale programs rather than one, the insurance structure and its exit explained before an offer is written, and the terms in writing from a licensed loan officer.
Several programs, one set of numbers
A lender with one rate sheet sells that sheet; a brokerage with several can say which fits. For a Hanover buyer with a strong score that is usually a conventional loan on the program whose cost is lowest for that file; for a modest score it may be FHA, and the arithmetic decides.
The insurance explained before the offer
The insurance is the program’s cost and the cancellation rules are its advantage, and Lendmire explains both first rather than last: how much the premium is, which structure fits, and when it ends for a Hanover buyer at the price in hand.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the Hanover 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.
Hanover conventional loan FAQs
What a conventional loan is, how much it takes to buy, what score it needs, how the mortgage insurance works and ends, and how the conforming limit works, answered for Hanover buyers.
What is a conventional loan, and who is it for?
Think of it as the mortgage without a federal guaranty or insurance: the agencies set the rules, a private insurer covers the high-leverage slice, and the score sets the price. Principal residences, second homes, and one- to four-unit rentals are all inside it.
How much do I need to put down on a conventional loan in Hanover?
The snapshot shows the minimums: one for the first-time buyer, one for everyone else, both on a principal residence. The calculator applies either to a Hanover price, and the leverage table gives the figure for second homes and investment property.
What credit score do I need for a conventional loan?
The floor in the snapshot opens the program; the score above it sets the cost. With more than one borrower the automated system uses the average of the median scores, and a Hanover buyer close to a cost tier may gain from a short wait and a paid-down balance.
How does private mortgage insurance work, and when does it end?
The premium is a percentage of the loan a year, divided into the monthly payment, and it is set by the insurer on the score and the leverage rather than by a government schedule. It cancels: by request at the request threshold, automatically at the termination threshold, and no later than the midpoint of the term.
What is the conforming loan limit in Hanover?
The limit is the first thing confirmed on a Hanover file near the top of the market. These pages state the program’s structure rather than a number that changes every year; the current figure comes from a loan officer.
Should I choose a conventional loan or FHA?
Conventional tends to fit the buyer with a strong score, because its insurance cancels and carries no upfront premium; FHA tends to fit the buyer with a modest score, because its ratios stretch further. The answer for a Hanover buyer comes from the numbers, not the label.
What happens after my Hanover offer is accepted?
The lender orders the appraisal or accepts the value the automated system offers, checks the seller contributions against the cap for the leverage, confirms the project review for a condominium and the conforming limit, and underwrites the file against the finding. Closing sets up the escrows and starts the insurance where the loan is above the threshold. How long it takes depends on the appraisal and the conditions underwriting adds.
What does the appraisal check on a conventional loan?
The appraisal sets the value the loan is sized on and reports on condition. A value under the price is the usual detour, and the contract’s appraisal contingency is the buyer’s protection.
Can I buy a second home with a conventional loan?
Yes, at the second-home leverage in the snapshot table. The home must be occupied by the owner part of the year and not operated as a rental business; a property rented full time is an investment property under the program.
Can I buy a rental property with a conventional loan?
Investment property is inside the conventional program at a lower leverage than a principal residence. A Hanover buyer documents the rents, shows reserves for every property financed, and accepts loan-level adjustments for the occupancy.
A Hanover conforming loan, from the first numbers to the closing table.
A Hanover conventional purchase starts with three questions: the score, the down payment, and the occupancy. Lendmire answers them, prices the programs, and writes up the one that fits.
This guide covers Hanover — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Pennsylvania, part of Lendmire’s conventional loan program.
Nearby markets in Pennsylvania: Gettysburg · York · Carlisle · Harrisburg · Chambersburg · Hershey · Lancaster · Lebanon
Related programs: FHA Loans · Jumbo Loans · Refinance Loans