Current conventional guidelines, updated from one source.
Treat these as the program’s fixed points rather than an offer: the minimum down payment for a first-time buyer and for everyone else, the credit floor behind these pages, the leverage at which mortgage insurance begins and the points at which it ends, and the ratio an automated approval allows.
First-time buyer; 5% standard; 97% loan-to-value at the top
On a principal residence the down payment starts at 3% for a first-time buyer and 5% otherwise, the top leverage being 97% loan-to-value. Second homes and investment properties ask for more, as the leverage table shows, and the price of any leverage above 80% is mortgage insurance.
Priced on the score; no agency minimum with an automated approval
620 is the working floor, a wholesale overlay rather than an agency rule, since Fannie Mae requires no minimum score for a loan the automated system approves and 620 only on a manual fixed-rate file. Above the floor, each step up in score lowers the cost of the loan and of the insurance.
Required above 80% LTV; removed at 80% by request, 78% automatically
Mortgage insurance is required when the loan exceeds 80% loan-to-value, and it’s temporary: the borrower may ask for cancellation when the balance hits 80% of the original value, and the servicer must end it automatically at 78%. Fannie Mae reports premiums typically ran 0.58%–1.86% of the loan a year, set by the insurer on score and leverage.
With an automated approval; 36% to 45% on a manual file
Lenders compare total debt against gross income, with limits up to 50% on an automated approval and 36% to 45% on a manual file. The housing payment counted includes the mortgage insurance while it applies, which is why cancellation changes the ratio as well as the payment.
| 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.
For informational purposes only. This is not a commitment to lend or extend credit, an offer, or a quote. Program parameters shown are Fannie Mae and Freddie Mac guidelines and wholesale lender overlays, are subject to change without notice, and every figure depends on the borrower, the property, the occupancy, the automated underwriting finding, and full underwriting. Mortgage insurance figures are published typical ranges and editable estimates, not premium quotes. Conforming loan limits apply by county. Lendmire is a mortgage 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 Hershey 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
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 Hershey buyer.
Credit scores and automated underwriting
What the score does on a Hershey conventional file is set the cost. A lower score raises the loan-level adjustments and the insurance premium; a higher score lowers both. Manual underwriting, used when the automated system cannot approve the file, carries its own minimum score and tighter ratios.
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 Hershey second-home or investment file carries more than a principal residence. Income needs a two-year history and a reasonable expectation of continuing.
The calculator runs this on a Hershey scenario and adds the piece most calculators skip: the month on the amortization schedule when the balance reaches the request and automatic-termination thresholds, so the payment after the insurance ends is visible beside the payment before.
Where Hershey buyers borrow — and how a conforming loan fits.
The leverage limits are percentages; the market turns them into dollars. The Census figures below describe Hershey’s ownership, home values, and household income, the backdrop every conforming loan here is sized against.
These are context figures, not underwriting inputs. 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 Hershey neighborhoods, distinct conventional files.
A Hershey condominium, a decades-old family house, and a second home are three different conventional files: different project reviews, different leverage, different reserves. The six submarkets below show the range.
Workforce neighborhoods
The year-round Hershey workforce is the program’s everyday constituency: a small down payment that may be a gift, insurance that ends on schedule, and a payment the ratio carries. These neighborhoods are where the program fits the market best. Median household income in Hershey sits near $78,587 on the latest Census estimate.
Condominium projects
Warrantability decides the Hershey condominium file: owner-occupancy mix, association finances, litigation, and rental operations all bear on it, and the review is done before the appraisal is ordered so the contract is not carried past the point of no return. Hershey is home to about 14K people.
Year-round primary residences
A year-round Hershey home is a conventional purchase like any other: a down payment from the minimum up, insurance while the leverage is above the threshold, a payment the ratio carries, and the usual appraisal on comparable sales. About 46% of Hershey’s households rent — roughly 2,682 renter households on the latest Census estimate.
Higher-value homes
A high-value Hershey home can still be a conforming loan when the loan amount fits under the county limit; above it, the jumbo program takes the file with its own leverage, reserves, and appraisal rules. On a one-unit principal residence at Hershey’s median value, the first-time buyer’s minimum down payment comes to about $11,400 and the standard minimum to about $19,000 — 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.
Homes bought for their setting
On a Hershey home that trades on its setting the appraisal carries more weight: the value must be supported on comparable sales, and the loan amount is checked against the conforming limit, which higher-priced homes approach quickly. The median owner-occupied home value in Hershey runs near $379,200 on the latest Census estimate.
Second homes and vacation condominiums
The second-home purchase is the resort market’s conventional specialty: more down than a principal residence, part of it from the buyer’s own funds, reserves for both properties, and an occupancy the buyer must actually keep. Roughly 3,109 Hershey households own their homes on the latest Census estimate — 54% of all households, the pool a conventional purchase joins.
Across all of Hershey, five questions settle a conventional loan: what the appraisal supports, whether the property passes the agencies’ review, how the home will be occupied, what the score costs, and what the ratio and reserves allow.
Four ways Hershey buyers put a conforming loan to work.
Hershey 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 first home at the first-time-buyer minimum
A Hershey 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.
Refinance or take cash out
A Hershey owner can refinance a conventional loan two ways: a limited cash-out refinance to the rate-and-term leverage in the snapshot, or a cash-out refinance to the lower cash-out leverage after the seasoning period, on a principal residence, second home, or rental at each occupancy’s own limit.
Buy a condominium in a warrantable project
Condominiums are a common first purchase in Hershey, and a warrantable project is financed like a house with the dues in the ratio; a project that fails the review is outside the conforming program and goes to a portfolio lender instead.
Buy an investment property
Investment property on a conforming loan is a common entry point for Hershey 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.
Estimate the payment on a Hershey price before requesting a quote.
Before you ask for a quote, size the payment yourself: the Hershey price, the down payment, the term, the benchmark rate, the insurance estimate, and the escrows go in, and the thresholds and the ratio ceiling come from the same guideline source as the block above. The result is an estimate, the rate is a published market average, and the insurance figure is an editable estimate inside Fannie Mae’s published range.
Hershey conventional payment estimate
Seeded with a Hershey price and the first-time buyer’s minimum down; every field updates the result as you type.
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 $380,000 price near Hershey’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.
Choosing among conventional, FHA, and VA in Hershey is really choosing an insurance structure and a credit standard at the same time. Each is laid out below with the buyer it fits.
Conventional, FHA, or VA.
The program’s strengths are the cancellable insurance, the breadth of occupancies, and a cost structure that rewards a strong score; its weakness is the same structure applied to a weak one. A Hershey buyer with a strong score usually pays less each month here than on FHA.
Where conventional prices the score, FHA prices by schedule. FHA fits the buyer whose score would be priced heavily on a conventional loan, or who needs the room FHA’s ratio tiers allow; it rarely wins for a Hershey buyer with strong credit and a down payment above the minimum. See Lendmire’s FHA loan program.
A Hershey buyer with VA eligibility and full entitlement rarely needs a conventional loan for a principal residence: nothing down, no insurance, and residual-income underwriting. Conventional is the route for that same veteran’s second home or investment property, which VA does not finance. 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 Hershey 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 Hershey scenario review.
What a lender reads on a Hershey 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.
What moves a Hershey file most often: the insurance and its cancellation, the score and the cost it sets, the appraisal, the condominium review, the conforming limit, the ratio and the reserves, the occupancy rule, and the seasoning after a credit event.
Use these checks to keep the Hershey file clean and fundable.
A Hershey file that is ready to review has already answered three questions: what leverage and therefore what insurance, what score and therefore what price, and whether the home is inside the agencies’ rules.
- Plan the insurance: it cancels on request at the request threshold and automatically at the termination threshold.
- Confirm the score: the lender’s report sets the decision score; multiple borrowers use the average of the median scores.
- Mind the appraisal: a short value is paid in cash, renegotiated, or released under the contingency.
Mortgage insurance: how much, and until when
The premium on a Hershey loan can be paid monthly, paid by the lender in exchange for a different price, paid as a single premium at closing, or split. The monthly structure cancels under the federal rules, and the others are set 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 comes from the lender’s report, and with multiple borrowers the automated system uses the average of the median scores. On a Hershey 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.
The appraisal and value acceptance
When the value comes in under the contract price on a Hershey file, the loan is sized on the lower figure: the buyer brings the difference, the price is renegotiated, or the contract is released under its appraisal contingency. Condition findings are rarer than on government loans but still appear on older homes.
Occupancy and its leverage
Each occupancy has its own leverage limit and loan-level adjustments: a principal residence occupied within sixty days of closing reaches the top of the table, a second home is lower, an investment property lower still. A Hershey buyer who states one occupancy and uses another has misrepresented the loan.
Second homes, rentals, and financed-property limits
A Hershey household can hold several conventional loans at once, but each financed property adds reserves to the next file and the agencies cap the number of financed properties a borrower may have. Second homes and rentals are leveraged lower than a principal residence and priced for the occupancy.
From a Hershey pre-approval to keys in hand.
Underneath, the Hershey 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
The first conversation settles the shape: whether the buyer counts as a first-time buyer, what leverage the occupancy allows, how much insurance the down payment carries, and whether conventional is the right program next to FHA and VA for the Hershey purchase.
Contract and appraisal
The Hershey contract sets the price and the contributions; the appraisal, or the system’s value acceptance, sets the value. Both feed the loan amount, and the lender confirms the project review and the conforming limit before underwriting begins.
Underwriting
Underwriting on a Hershey conventional file verifies the finding: the documents behind 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
Closing is where the structure becomes a payment: principal and interest, the insurance while the loan is above the threshold, taxes and insurance. The Hershey buyer takes the keys, and the lender delivers the loan to the agency it was written for.
A brokerage that prices the whole market.
Lendmire never lends. It reads a Hershey file against conventional, FHA, and VA, matches the program to the profile, and keeps the premium, the cost tier, and the conforming limit in front of the buyer before anything is signed.
Several programs, one set of numbers
The comparison printed on this page is run for real on every Hershey 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
The premium and its exit are decided by the leverage and the score, and a buyer should know both before signing a contract. Lendmire states the structure for the Hershey purchase, shows the payment before and after cancellation, and explains the request and automatic thresholds.
Licensed, consumer-purpose, in writing
Lendmire is licensed in sixteen states for consumer mortgages, each owner-occupied loan is a consumer-purpose transaction with a full set of disclosures, and every figure a Hershey buyer relies on, from leverage to premium to final terms, comes in writing from a licensed loan officer.
Trusted by buyers & families alike.
Hershey conventional loan FAQs
The questions below come up on nearly every Hershey conventional conversation. The answers are general; the figures in the snapshot above are the program’s current parameters.
What is a conventional loan, and who is it for?
A conventional loan is a mortgage written to the rules of Fannie Mae and Freddie Mac so the lender can sell it to them after closing; no government agency insures it, and a private insurer covers the top slice above the leverage threshold. It fits the Hershey buyer with a solid score, any down payment from the program minimum up, and any occupancy the agencies allow, including second homes and rentals.
How much do I need to put down on a conventional loan in Hershey?
It depends on who is buying and how the home will be used. A first-time buyer starts at the lowest figure in the snapshot, a repeat buyer slightly higher, and a Hershey second home or rental higher still. Twenty percent down removes mortgage insurance entirely.
What credit score do I need for a conventional loan?
A conventional loan prices credit rather than simply gating it. The practical floor is the wholesale overlay in the snapshot; the agencies’ own minimum applies only to manual underwriting. Above the floor, the premium and the loan-level adjustments fall as the score rises.
How does private mortgage insurance work, and when does it end?
It is temporary insurance for the lender, paid by the borrower while the loan sits above the threshold. On a Hershey loan with scheduled payments the calculator shows the month the balance reaches the request point and the automatic one; extra principal or a rise in value, recognized by the servicer, can bring the request point sooner.
What is the conforming loan limit in Hershey?
The limit changes every year and differs by county and unit count, so ask a loan officer for the current figure. It caps the loan, not the price: a Hershey buyer above it brings a larger down payment or uses a jumbo loan.
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 Hershey file; the buyer brings the difference, renegotiates, or releases the contract under its contingency.
How does a conventional refinance work?
It depends on the goal: you can change the rate or term with a limited cash-out refinance, or borrow against equity with a cash-out refinance. Each has its own leverage, and a Hershey loan officer compares either with a home equity line before recommending one.
What happens after my Hershey offer is accepted?
Your Hershey contract goes to the lender, the appraisal is ordered or waived, and underwriting follows. The usual detours are a value under the price or a condition on an older home; a loan officer keeps the timeline honest.
Can I get a conventional loan after a bankruptcy or foreclosure?
Yes, with seasoning. The waits run longer than the government programs’ as a rule, which is why a Hershey buyer inside one often starts on FHA or VA and refinances into conventional later.
Can I buy a second home with a conventional loan?
Conventional financing reaches second homes where the government programs stop. The leverage is lower than on a principal residence, the reserves are higher, and the rest of the file is standard.
Conventional, FHA, or VA for Hershey: compared on your numbers.
Ask for a Hershey 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 Hershey — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Pennsylvania, part of Lendmire’s conventional loan program.
Nearby markets in Pennsylvania: Lebanon · Harrisburg · York · Lancaster · Carlisle · Hanover · Reading · Gettysburg
Related programs: FHA Loans · Jumbo Loans · Refinance Loans