Conventional loans are Fannie Mae and Freddie Mac loans. You can borrow up to $424,100. Loans above that amount are considered “jumbo” or “non-conforming” loans. The minimum down payment requirement is 3%.
Private mortgage insurance will be added to your payment if you put down less than 20%. Interest rates for conventional loans are very much credit score driven, the higher your score the lower your interest rate. With a conventional loan you can purchase a primary residence, a second home/vacation residence, or an investment property.
Fixed and adjustable rates are available, and terms from 10 to 30 years.
