Standard Conventional

Standard Conventional loans are offered as low as 5% down and do not have income restrictions.

Borrower Benefits and Program Details

• Available for purchase transactions
• Cash out refinances and no cash out refinances allowed
• Cash out the equity of your property up to 80% loan to value
• 5% minimum down payment required
• Primary Residences, 1-4 units, Condos and Planned Unit Developments
• Minimum FICO score of 620
• No Income Limits

Here is a summary of the advantages and disadvantages, of conventional mortgages.

Additional Advantages

• Mortgage insurance not required if 80% loan to value (LTV) or less
• Cancel existing mortgage insurance at 80% LTV
• Can be used on all property types
• More loan program options
• Can hold numerous conventional loans

Disadvantages

• Higher down payment requirements
• Larger down payments for multifamily properties
• Higher reserves for multifamily properties
• May be more difficult to qualify for than FHA or other government-backed loan
• Mortgage insurance still required for loans above 80% LTV