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
3% down is the first-time buyer’s entry point and 5% the standard one, both on a one-unit principal residence; second homes, two- to four-unit homes, and investment properties carry their own leverage limits, listed in the table below.
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
The insurance line in a conventional payment is a bridge, not a fixture: required above 80% loan-to-value, cancellable at 80% on request and 78% by law, and priced by the insurer on the score inside Fannie Mae’s published 0.58%–1.86% range. Twenty percent down skips it entirely.
With an automated approval; 36% to 45% on a manual file
The total ratio runs to 50% with an automated approval, with the finding itself deciding how much of that room a particular file gets; manual files are read at 36%, or 45% with the matrix’s credit and reserve criteria met.
| 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.
Informational only; not a commitment to lend, an approval, or a quote. Every figure on this page is a program parameter read from Lendmire’s guideline source, built on the agencies’ published guides, and may change without notice; eligibility, the loan amount, the insurance, and the ratios depend on the credit profile, the property, the occupancy, and underwriting. The mortgage insurance estimate is editable and not a premium quote. Lendmire is a mortgage broker licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
Four rules shape a South Haven conventional file: leverage by occupancy and buyer, credit scoring that prices rather than gates, mortgage insurance that cancels, and ratios set by the underwriting path. Each is explained below with the reason behind it.
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 South Haven buyer.
Credit scores and automated underwriting
The automated system, DU on the Fannie Mae side and LPA on the Freddie Mac side, reads the whole credit file rather than a single number: the score, the depth of history, the recent events, and the seasoning after any derogatory event. The score it uses with more than one borrower is the average of the median scores.
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
Total debt-to-income is the ratio that counts: the full housing payment, insurance included, plus every monthly obligation, against gross income. Automated approvals reach the higher ceiling in the snapshot; manual files are held to the lower pair, with the higher of the two needing the matrix’s credit and reserve criteria.
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 South Haven buyers borrow — and how a conforming loan fits.
The leverage limits are percentages; the market turns them into dollars. The Census figures below describe South Haven’s ownership, home values, and household income, the backdrop every conforming loan here is sized against.
These are context figures, not underwriting inputs. Two buyers at the same score can see different files here: one buys at the median and sits well inside the ratio, another stretches above it and needs reserves and a stronger finding. The market sets the spread.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct South Haven neighborhoods, distinct conventional files.
Where South Haven 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.
Year-round primary residences
In a resort market the principal-residence file is the one with the most room: the top leverage, reserves set by the finding alone, and the cost tier the score earns. A South Haven buyer who lives there full time uses it like any other buyer. About 29% of South Haven’s households rent — roughly 599 renter households on the latest Census estimate.
Second homes and vacation condominiums
South Haven’s second homes are what the conventional program finances and no government program does: the second-home leverage shown in the guidelines above, deeper reserves, and a home the owner occupies part of the year rather than rents full time. Median household income in South Haven sits near $68,239 on the latest Census estimate.
Condominium projects
Warrantability decides the South Haven 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. South Haven is home to about 4.0K people.
Workforce neighborhoods
Away from the resort core, South Haven’s workforce neighborhoods are where the conventional structure fits a local income: modestly priced homes, first-time buyers at the program minimum, and loans well inside the ratio and the limit. Roughly 1,448 South Haven households own their homes on the latest Census estimate — 71% of all households, the pool a conventional purchase joins.
Homes bought for their setting
Homes bought for their setting in South Haven are eligible as principal residences or second homes at their own leverage; the appraisal, with its thinner set of comparable sales, and the flood determination are the two steps that take longer. The median owner-occupied home value in South Haven runs near $454,100 on the latest Census estimate.
Higher-value homes
The higher-value South Haven file is a limit question before it is anything else: the county cap on the loan amount decides whether the conforming program applies at all, and the high-balance range matters where the county has one. On a one-unit principal residence at South Haven’s median value, the first-time buyer’s minimum down payment comes to about $13,600 and the standard minimum to about $22,700 — 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.
The rules do not change with the street. Every South Haven file is checked the same way: price against the appraisal, property against the agencies’ standards, condominium against the project review, occupancy against its leverage limit, and borrower against the score, the ratios, and the reserves the finding requires.
Four ways South Haven buyers put a conforming loan to work.
South Haven 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 second home
A second home in South Haven is a conventional file with its own leverage and reserve rules: more down than a principal residence, the payment on the existing home counted in the ratio, and a property the owner occupies part of the year rather than rents full time.
Refinance or take cash out
A South Haven 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 South Haven, 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 with twenty percent down and no insurance
The move-up South Haven buyer selling one home and bringing twenty percent to the next usually lands here: no mortgage insurance, the strongest cost tier the score earns, and a loan the automated system reviews with the equity brought forward counted in the file.
Estimate the payment on a South Haven price before requesting a quote.
The program’s own math on your South Haven inputs: price less the down payment, amortized at the benchmark, with the insurance estimate added while the leverage is above the threshold and the escrows added throughout. The actual rate, premium, payment, and costs come in writing from a licensed loan officer.
South Haven conventional payment estimate
Use the South Haven 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 $455,000 price near South Haven’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.
Conventional fits the South Haven 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.
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 South Haven buyer with strong credit and a down payment above the minimum. 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 South Haven 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 South Haven file is priced on all three before one is recommended. Above the conforming limit, see the jumbo loan program.
What to prepare for a South Haven scenario review.
The paperwork is the standard mortgage set, with the automated finding deciding how much of it the file actually needs; here is what a South Haven scenario review typically draws on.
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.
Check these before leaning on any number for South Haven: the mortgage insurance structure and when it ends, the score and what it costs, the appraisal, the condominium review, the conforming limit, the ratio and reserves, and the occupancy.
Use these checks to keep the South Haven file clean and fundable.
A South Haven 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: the premium is priced on the score and the leverage inside the published range.
- Confirm the score: the lender’s report sets the decision score; multiple borrowers use the average of the median scores.
- Match the occupancy: second homes and investment property carry their own leverage and reserves.
Mortgage insurance: how much, and until when
The premium on a South Haven 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 score does two jobs on a South Haven 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.
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 South Haven buyer who states one occupancy and uses another has misrepresented the loan.
Warrantable or not
Project review is the one property question that can take a South Haven condominium out of the program entirely. The lender collects the association’s questionnaire, budget, and insurance before the appraisal, and a buyer under contract should ask early how the project reads.
Second homes, rentals, and financed-property limits
A South Haven 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 South Haven pre-approval to keys in hand.
Four steps: the pre-approval, the appraisal, the underwriting, and the closing. The South Haven version of each follows.
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
Underwriting on a South Haven 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 South Haven 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.
A single lender prices a conventional loan one way; a brokerage with several wholesale programs prices it several ways and shows a South Haven 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
A lender with one rate sheet sells that sheet; a brokerage with several can say which fits. For a South Haven 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 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 South Haven purchase, shows the payment before and after cancellation, and explains the request and automatic thresholds.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the South Haven 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.
South Haven conventional loan FAQs
The questions below come up on nearly every South Haven 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 the mortgage a South Haven buyer with good credit should compare first: a low down payment for the first-time buyer, insurance that cancels, no upfront premium, and the breadth to finance a second home or a rental under the same rules.
How much do I need to put down on a conventional loan in South Haven?
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?
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?
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 South Haven?
Conforming limits are set each year by the FHFA, by county and by unit count, with higher limits in high-cost areas, which is why this page does not quote a figure. A Lendmire loan officer confirms the current limit for the county where you are buying; a loan above it needs a larger down payment to fit under the limit or moves to the jumbo program.
Can I take cash out with a conventional refinance?
It is available at the cash-out leverage shown in the snapshot, with the occupancy setting the limit and the score setting the price. A South Haven owner weighs it against a home equity line on the same numbers.
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 South Haven buyer who qualifies usually pays less than on the standard conventional structure at the same leverage.
What happens after my South Haven offer is accepted?
Appraisal first, then underwriting, then conditions, then closing. The appraisal or the value acceptance sets the value; the underwriter verifies what the finding assumed; the closing funds the loan at the leverage chosen and starts a payment with the insurance line if one applies.
Can the down payment be a gift?
Yes. On a one-unit principal residence the entire down payment may come from a relative, a domestic partner, or a fiancé, documented with a gift letter stating that no repayment is expected and evidence of the transfer. On a second home or a two- to four-unit home above the threshold, part of the down payment must be the buyer’s own funds.
What debt-to-income ratio does a conventional loan allow?
Two paths, all of them total ratios: a single higher ceiling for a file the automated system approves, and for manual underwriting a lower figure, with a higher one available when the matrix’s credit and reserve criteria are met. The housing payment counted includes the insurance while it applies, which is why cancellation lowers the ratio as well as the payment.
Conventional, FHA, or VA for South Haven: compared on your numbers.
A South Haven 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 South Haven — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Michigan, part of Lendmire’s conventional loan program.
Nearby markets in Michigan: Saugatuck · Kalamazoo · Portage · Niles · Wyoming · Kentwood · Grand Rapids · Norton Shores
Related programs: FHA Loans · Jumbo Loans · Refinance Loans