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
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
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.
Nearly every Jeffersonville conventional file is read by an automated underwriting system against the agencies’ guides, and the few written by hand follow the manual columns of the same rules. The system does not change the rules below; it applies them: the leverage the occupancy allows, how the score is read, when mortgage insurance attaches and ends, and what the ratios and reserves must show.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Indiana; 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 Jeffersonville buyer.
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 Jeffersonville buyer with a stronger score pays less on both lines.
Mortgage insurance that cancels
Twenty percent down means no mortgage insurance at all, and anything less means insurance for a while. The calculator on this page shows the Jeffersonville payment with the estimated premium and the payment after it ends, along with the month on the amortization schedule when the request and automatic thresholds arrive.
Ratios, reserves, and the DU finding
The automated finding is the hinge of a conventional file: it reads the income, the assets, the credit, and the property, allows a total debt ratio up to the automated maximum, and names the reserves the file must show. A Jeffersonville underwriter then verifies what the finding assumed.
None of this is a decision. The appraisal can come in under the price, the rate is set at lock, the premium is set by the insurer, and the automated finding sets the reserves. What stays fixed is the structure the calculator reproduces: price, down payment, leverage, insurance, payment.
Where Jeffersonville buyers borrow — and how a conforming loan fits.
These numbers are Jeffersonville’s, not any one borrower’s: owner households, median home value, and household income from the U.S. Census Bureau. They give the scale of a typical purchase here; the score, the appraisal, and the household’s own income give the loan.
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 Jeffersonville neighborhoods, distinct conventional files.
The house and its use decide the file as much as the borrower. These Jeffersonville submarkets differ in the property types, the occupancies, and the prices a typical buyer carries, which is what the cards below describe.
In-town neighborhoods
Jeffersonville’s in-town blocks hold its oldest houses, and a conventional appraisal reads them for value first; condition notes appear on failing roofs and systems, and sellers usually address them before closing. The median owner-occupied home value in Jeffersonville runs near $216,800 on the latest Census estimate.
Rural-edge and acreage properties
A Jeffersonville property with land qualifies as a residence. Fewer comparable sales mean a more careful appraisal, and outbuildings beyond residential use are not added to the value. On a one-unit principal residence at Jeffersonville’s median value, the first-time buyer’s minimum down payment comes to about $6,500 and the standard minimum to about $10,800 — 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.
Everyday values and the first-time minimum
At Jeffersonville’s price levels the conventional structure is at its most comfortable: a small down payment that may be a gift, a premium that ends on schedule, and a payment that typically leaves room under the ratio on a local income. Median household income in Jeffersonville sits near $70,930 on the latest Census estimate.
Multi-unit conversions
One side occupied, the other side’s rent counted within the program’s rules: that is the Jeffersonville duplex on a conventional loan, at the multi-unit leverage rather than the single-family one. Roughly 15,983 Jeffersonville households own their homes on the latest Census estimate — 72% of all households, the pool a conventional purchase joins.
Newer subdivisions on the bypass
The newer Jeffersonville subdivisions out by the bypass appraise cleanly, and the system often offers value acceptance; the question is whether the ratio carries the higher price with the insurance added. About 28% of Jeffersonville’s households rent — roughly 6,213 renter households on the latest Census estimate.
Manufactured homes
Jeffersonville manufactured homes finance on conventional loans under the agencies’ rules for the home and the site; a home on leased land or without a permanent foundation does not qualify, and the wholesale programs may add conditions. Jeffersonville is home to about 51K people.
Neighborhood sets the price, the property type, and often the occupancy; the agencies set the rest. The leverage table, the insurance thresholds, the ratio ceiling, and the waiting periods apply identically on every Jeffersonville file.
Four ways Jeffersonville buyers put a conforming loan to work.
Jeffersonville 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 with twenty percent down and no insurance
Twenty percent down removes the insurance line from the payment on any conventional purchase in Jeffersonville; between the minimum and twenty percent, the insurance applies for a while and then ends, and the calculator shows both payments.
Refinance or take cash out
A Jeffersonville 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 Jeffersonville, 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 a second home
For the Jeffersonville 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.
Estimate the payment on a Jeffersonville price before requesting a quote.
Enter a Jeffersonville 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.
Jeffersonville conventional payment estimate
Use the Jeffersonville 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 Jeffersonville’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 Indiana (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 Jeffersonville buyer weighing all three.
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 Jeffersonville buyer with a strong score usually pays less each month here than on FHA.
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 Jeffersonville buyer comparing the two sees the premium line stay on FHA and disappear on conventional. See Lendmire’s FHA loan program.
A Jeffersonville 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.
The decision is rarely close once the profile is known. Conventional tends to win for a strong score and for every non-primary occupancy, FHA for a modest score, and VA for nearly any eligible principal residence. The comparison is run on the actual numbers, in writing. Above the conforming limit, see the jumbo loan program.
What to prepare for a Jeffersonville scenario review.
Gather these before a Jeffersonville 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.
What moves a Jeffersonville 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 Jeffersonville file clean and fundable.
A Jeffersonville 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 ratios: the total ratio includes the insurance while it applies.
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 Jeffersonville 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 score does two jobs on a Jeffersonville file: it feeds the automated assessment alongside the rest of the credit file, and it sets the cost of the loan and the insurance. A buyer close to a cost tier sometimes gains more from a short wait and a paid-down balance than from any other change.
Ratios, reserves, and the finding
Enter income in the calculator to see where a Jeffersonville scenario lands against the automated maximum; the finding, the score, and the reserves decide the rest, and the ratio drops on its own once the insurance cancels, because the premium leaves the housing payment.
The conforming limit
The conforming limit is the first thing confirmed on a Jeffersonville file near the top of the market, and the high-balance range in some counties sits above the standard figure. Ask a loan officer for the current limit where you are buying before writing the offer; a loan above it needs a larger down payment or the jumbo program.
Seller contributions and the down payment
Sellers and other interested parties may pay closing costs, prepaids, and other concessions up to a cap set by the combined loan-to-value, as the snapshot table shows; above the cap the excess reduces the price for sizing the loan. The down payment cannot come from the seller, but a relative’s gift can fund it on a one-unit principal residence.
From a Jeffersonville pre-approval to keys in hand.
From the first conversation to the closing table, a Jeffersonville conventional purchase takes four steps, and each one carries an agency rule inside it.
Pre-approval
A Jeffersonville pre-approval is a sizing exercise run through the automated system: the score, the income, the assets, the occupancy, and the price. The finding sets the ratio room and the reserves, and the loan officer puts the pre-approval in writing for the offer.
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 Jeffersonville 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 Jeffersonville 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
At closing the loan funds at the chosen leverage, mortgage insurance starts with the first payment if the loan is above the threshold, and escrows for taxes and insurance are set up. A Jeffersonville buyer signs the note and security instrument, occupies the home within the occupancy window, and the agency buys the loan.
A brokerage that prices the whole market.
Lendmire never lends. It reads a Jeffersonville 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
Before any recommendation, the Jeffersonville file is priced across the wholesale programs Lendmire works with and run against FHA and VA on the same price, score, and down payment. The buyer sees the payment, the insurance line, and the cash to close for each, and the choice follows the figures.
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 Jeffersonville 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 Jeffersonville buyer relies on, from leverage to premium to final terms, comes in writing from a licensed loan officer.
Trusted by buyers & families alike.
Jeffersonville conventional loan FAQs
The questions below come up on nearly every Jeffersonville 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?
Conventional means conforming: a loan inside the conforming limit, qualified by an automated underwriting system against the agencies’ rules. A Jeffersonville buyer applies through a lender or broker, the lender follows the guides, and the agency buys the loan.
How much do I need to put down on a conventional loan in Jeffersonville?
The first-time buyer’s minimum down payment is in the snapshot on this page, for a one-unit principal residence with a fixed rate. A first-time buyer is anyone without an ownership interest in a home during the prior three years. Everyone else pays the standard minimum. Second homes, multi-unit homes, and investment property need more, as the leverage table shows. A relative’s gift may fund the whole down payment on a one-unit principal residence.
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 Jeffersonville loan.
How does private mortgage insurance work, and when does it end?
Three dates matter: the month the balance reaches the request threshold, when the borrower can ask the servicer to drop the premium with a good payment history; the month it reaches the termination threshold, when the servicer must drop it; and the midpoint of the term, the final backstop. Twenty percent down means none of this applies.
What is the conforming loan limit in Jeffersonville?
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 Jeffersonville buyer above it brings a larger down payment or uses a jumbo loan.
What happens after my Jeffersonville 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.
Can the seller pay my closing costs on a conventional loan?
Within the cap for the combined loan-to-value, yes: closing costs, prepaids, and points. The down payment is separate and must be the buyer’s own funds or a gift; the seller can cover the rest up to the cap.
Should I choose a conventional loan or FHA?
Choose by profile: conventional for the buyer whose score earns a small, cancellable premium, FHA for the buyer a conventional loan would price heavily. Many Jeffersonville buyers start on FHA and refinance into conventional once equity and credit allow.
What does the appraisal check on a conventional loan?
Value first: the loan is sized on the lesser of the price and the appraised value. Condition second: there is no HUD or VA property standard, but the home must be safe, sound, and marketable, and findings on older homes are settled before closing. Where the automated system offers value acceptance or an appraisal waiver, no appraisal is ordered at all.
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 Jeffersonville buyer who qualifies usually pays less than on the standard conventional structure at the same leverage.
The Jeffersonville conforming file, priced across the market and explained plainly.
Begin with a scenario review: the price, the down payment, the score, the income, and the occupancy. A licensed Lendmire loan officer prices the file across the wholesale programs, runs it beside FHA and VA, and puts the terms in writing.
This guide covers Jeffersonville — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Indiana, part of Lendmire’s conventional loan program.
Nearby markets in Indiana: French Lick · Columbus · Nashville · Bloomington · Greenwood · Indianapolis · Evansville · Lawrence
Related programs: FHA Loans · Jumbo Loans · Refinance Loans