Conventional Loans: Smart Financing for Primary and Second home financing and refinancing, Investors & Homeowners Ask us about our 99% LTV conventional loan program What are the main differences in the 3% down payment vs. 5% down payment Conventional Loan? Whether you're a first-time buyer or planning your next move, choosing between a 3% or 5% down payment on a conventional loan can make a big difference in your upfront costs and long- term mortgage strategy. Let’s break it down. 1. Conventional 3% Down Payment Loan Mortgages that only require a 3 percent down payment are often part of a special program, and they’re open to anyone who meets the program requirements. Typically, you must be a first-time homebuyer or have not owned a home over the past few years to qualify; generally, you must also meet the program’s income limits The down payment doesn’t have to come from your savings, the funds can be a gift from a friend or relative, grant or other form of assistance. However, borrowers must meet certain qualifications to obtain this mortgage, including: • First-time homebuyer: At least one of the loan applicants must be a first-time homebuyer or not have owned a home in the past three years. • Homeownership education course: If all the borrowers are first-time buyers, at least one borrower must complete a homebuyer education course. • Debt-to-income (DTI) ratio and credit score: You must meet conventional DTI requirements and have a credit score of 640 or higher. • Residential requirements: The home you’re buying must be your primary residence, meaning you intend to live in it. • Conforming loan limitations: The purchase price of the home cannot exceed current conforming loan limits, which is based on counties within the state in most parts of the country; in more expensive areas, the loan limit increases. (Learn More) 2. Conventional 5% Down Payment Loan Looking for a flexible, affordable home loan? Our 5% down conventional loan may be the perfect fit. Ideal for both first-time homebuyers and seasoned homeowners, conventional loans offer competitive interest rates, lower costs, and customizable terms. Whether you're buying your dream home, refinancing your current mortgage, or investing in property, conventional loans provide flexible options to suit your financial goals. Why Choose a 5% Conventional Loan? • Competitive Interest Rates vs. the 3% down conventional loan • A minimum credit score of 640 or higher • Debt-to-income (DTI) ratio up to 50% • Homeownership Education: Is not required) • Flexible Terms – 10, 15, 20, or 30 years Ideal for Primary Residences, Second Homes & Investment Properties Property Types • Primary & second home • Vacation home • Warrantable & Non-Warrantable Condos • Townhouse • Multi-family • One time Close Construction Loans • Investment properties Types of Conventional Loans We Offer • Fixed-Rate Mortgages: Stable monthly payments for the life of the loan • Adjustable-Rate Mortgages (ARMs): Lower initial rates with flexible adjustments • Conforming Loans: Meet Fannie Mae and Freddie Mac guidelines • Non-Conforming Loans: Jumbo loans for high-value properties Ready to Get Started? Whether you're buying, refinancing, or just exploring options, our expert mortgage team is here to help. We’ll guide you through every step of the loan process to ensure you find the best solution for your needs. • Get Pre-Qualified in Minutes • Talk to a Loan Expert Today • Make Your Homeownership Dream a Reality Mortgage Insurance Requirements It is important to note that because you’re putting less than 20 percent down on the home you’ll need to pay private mortgage insurance (PMI) with your monthly mortgage payment. Once you have 20 percent equity in your home, you can stop paying PMI. Call us today or fill out our Request a Rate questionnaire below to see how a conventional loan can work for you.