What Is a Conventional Loan?

A conventional loan is a mortgage not insured or guaranteed by a government agency, such as FHA or VA. Instead, it is backed by private lenders and typically follows guidelines set by Fannie Mae or Freddie Mac.

Conventional loans are ideal for borrowers with good credit, consistent income, and manageable debt. Because they’re not tied to government programs, these loans offer flexibility in how they’re structured — with options to suit a wide range of financial strategies.

First-Time Homebuyer Programs

At Lendmire, we help qualified first-time buyers access programs that can make homeownership more affordable. These programs are offered through Fannie Mae and Freddie Mac, and can allow for reduced down payments and expanded eligibility.

Popular Conventional Options for First-Time Buyers:

• Fannie Mae HomeReady®:
  Designed for low-to-moderate-income buyers, this program offers flexible income guidelines and allows for as little as 3% down for qualified first-time buyers.

• Freddie Mac Home Possible®:
  A similar program with 3% down options, Home Possible® supports borrowers with low to moderate incomes, co-borrowers, and even non-occupant co-borrowers in some cases.

• Standard Conventional Financing:
  Most conventional loans allow up to 95% loan-to-value (LTV) on primary residences. However, eligible first-time buyers may qualify for 97% LTV, and some lenders now offer programs with up to 99% LTV under certain criteria.

LTV limits vary by program and lender. Eligibility and documentation requirements apply. Loan approvals are subject to credit, income, and underwriting guidelines.

Benefits of Conventional Loans

• Wide Eligibility: Ideal for primary residences, second homes, and investment properties

• Loan Structure Flexibility: Choose from fixed-rate or adjustable-rate terms

• Mortgage Insurance Options: May be reduced or waived based on down payment and credit

• Property Type Flexibility: Can be used for single-family homes, condos, and more

• Competitive Terms: For borrowers with strong credit, conventional loans often offer favorable terms

Why Lendmire

At Lendmire, we match you with the right conventional loan product for your situation. Our mortgage experts work with multiple lenders to find flexible, affordable options. We simplify the process from pre-qualification to closing, giving you the clarity and confidence you need to move forward.

Whether you’re a first-time buyer or a seasoned homeowner, we’re here to help you make the most of what conventional loans have to offer.

Compliance Notice

Lendmire complies with all federal and state lending regulations. Loan terms and availability are subject to credit approval, program eligibility, and market conditions. A Loan Estimate (LE) will be provided upon receipt of a completed application and documentation.