Smart, Flexible Financing
for Today's Homebuyers
Conventional loans offer competitive rates, flexible terms, and broad eligibility — for primary residences, second homes, and investment properties — without government program restrictions.
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The most versatile mortgage
program available.
As little as 3% downHomeReady® and Home Possible® programs for qualifying buyers
Up to 97% LTVFor first-time buyers on primary residence purchases
PMI cancellablePrivate mortgage insurance removed once you reach 20% equity
Fixed & adjustable ratesChoose the rate structure that matches your timeline
All occupancy typesPrimary residences, second homes, and investment properties
No upfront MIPUnlike FHA — no upfront mortgage insurance premium at closing
Backed by Fannie Mae & Freddie MacStandardized guidelines trusted by lenders nationwide
Broad property eligibilitySingle-family, condos, 2–4 units, and more
No prepayment penaltiesPay ahead or refinance at any time without fees
Program Snapshot
LTV limits, credit standards, and PMI requirements vary by lender, loan size, and borrower profile. All loans subject to credit and underwriting approval.
What Is a Conventional Loan?
A conventional loan is a mortgage not insured or guaranteed by a government agency. Instead, it follows guidelines set by Fannie Mae or Freddie Mac — the two government-sponsored enterprises that purchase most conventional mortgages from lenders. This standardization gives conventional loans broad lender support and consistently competitive rates for qualified borrowers.
Because they aren't tied to government programs, conventional loans offer greater flexibility in how they're structured — with options for primary residences, second homes, and investment properties, and a wide range of fixed and adjustable rate terms.
When you put less than 20% down on a conventional loan, private mortgage insurance (PMI) applies. But unlike FHA's mortgage insurance — which stays for the life of the loan — conventional PMI can be cancelled once your equity reaches 20%. For borrowers with good credit who can reach that threshold, the long-term cost advantage over FHA is significant.
Conventional Programs at Lendmire
HomeReady®
- 3% down for qualifying borrowers
- Designed for low-to-moderate income buyers
- Flexible income sources — boarder income allowed
- Reduced PMI rates vs. standard conventional
- Homebuyer education course required
- First-time and repeat buyers eligible
Home Possible®
- 3% down for qualifying borrowers
- Low-to-moderate income focus
- Non-occupant co-borrowers allowed in some cases
- Sweat equity accepted toward down payment
- Homebuyer education required for first-time buyers
- First-time and repeat buyers eligible
Standard Conventional
- Up to 95–97% LTV on primary residences
- 20% down eliminates PMI entirely
- Primary, second home, and investment eligible
- Fixed-rate: 10, 15, 20, 25, 30-year terms
- Adjustable: 5/6, 7/6, 10/6 ARM options
- Broadest property and occupancy flexibility
Who Qualifies & Eligible Properties
Typical Borrower Requirements
- Minimum credit score typically 620+
- Stable, documentable income (W-2, self-employed, or other)
- DTI generally below 45% (up to 50% with strong compensating factors)
- 2-year employment history typically required
- Clean credit profile — limited late payments
- Reserves may be required depending on occupancy and LTV
Eligible Property Types
- Single-family homes
- Condominiums (Fannie/Freddie approved)
- Townhomes and planned unit developments
- 2–4 unit properties (investment or owner-occupied)
- Second homes and vacation properties
- Investment / rental properties
More flexibility, lower long-term
cost for qualified borrowers.
Once your equity reaches 20%, PMI drops off — unlike FHA mortgage insurance which stays for the life of the loan on most transactions
Finance rental and investment properties up to 85% LTV — conventional is one of the few programs that allows non-owner-occupied financing at scale
Purchase vacation properties and second homes with conventional financing — government programs like FHA and USDA don't allow this
Unlike FHA's 1.75% upfront fee, conventional loans have no upfront mortgage insurance premium — keeping closing costs lower
Up to the 2025 conforming limit of $806,500 in most markets — with jumbo programs available for amounts beyond that threshold
Borrowers with 20% or more down and strong credit consistently receive the most competitive rates available in the market
Lendmire complies with all federal and state mortgage regulations. Conventional loan terms, LTV limits, PMI requirements, and availability are subject to borrower credit profile, income documentation, property type, and Fannie Mae or Freddie Mac underwriting guidelines. Conforming loan limits are set annually by the FHFA and subject to change.
A Loan Estimate (LE) will be provided upon submission of a completed application and required documentation. Lendmire LLC — NMLS #2371349. This is not a commitment to lend. All loans subject to credit and collateral approval.
News, guides &
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options today.
In about 30 seconds you can review conventional programs available for your home or investment property. No commitment required.
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