Conventional mortgage loans offer flexible terms, competitive rates, and broad property eligibility. These loans are ideal for borrowers with solid credit profiles and stable income who want long-term financing without government program restrictions.
Flexible structures • Competitive pricing • Multiple occupancy options
A conventional loan is a mortgage not backed by a government agency such as FHA, VA, or USDA. These loans are issued by private lenders and typically follow guidelines set by Fannie Mae and Freddie Mac.
Conventional mortgages are widely used due to their flexibility, pricing advantages, and ability to finance a wide range of property types.
PMI is required when putting less than 20% down but may be canceled once sufficient equity is reached.
| Property Type | Typical Minimum Down Payment |
|---|---|
| First-Time Buyer | 3% |
| Primary Residence (1 unit) | 5% |
| Second Home | 10% |
| 2–4 Unit Property | 15% |
| Jumbo / Non-Conforming | 20–40% |
Key underwriting factors include:
Total monthly obligations compared to income
Lower LTV often results in better rates and easier approval
Credit history and reserves may also influence pricing and eligibility
Offers consistent monthly payments for the life of the loan. Ideal for long-term stability and predictable budgeting.
Lower initial rates that adjust after a set period. Suitable for shorter-term plans or expected income growth.
Meets FHFA loan limits (up to applicable limits by county). Typically offers the most competitive pricing.
Exceeds conforming limits and is used for high-value or luxury properties.
A conventional loan is a mortgage not backed by government agencies like FHA, VA, or USDA. It’s offered by private lenders, typically under guidelines from Fannie Mae and Freddie Mac.
| If You Are... | Recommended Option |
|---|---|
| First-time buyer | 3% down conventional (HomeReady/Home Possible) |
| High-income borrower | Jumbo (non-conforming) |
| Buying a second home | 10% down conventional |
| Planning to stay long-term | 30-year fixed-rate mortgage |
| Planning to move in 5–7 years | 5/6 or 7/6 ARM |
Loans by Kelly provides clear guidance on rate strategy, PMI planning, and credit positioning to help you secure the most competitive conventional mortgage available.
Licensed in multiple states, with support in English, Portuguese, and Spanish.
3 Simple Steps to Get Pre-Approved with Confidence
We begin with a quick conversation to understand your goals, review your financial situation, and identify the best loan options for you.
We match you with the right loan option, whether you’re a first-time homebuyer, investor, self-employed borrower, or using alternative documentation.
Submit your application and receive a fast, no-obligation pre-approval, so you can move forward with confidence.
