Conventional

Conventional usually wins when your credit is 700+, DTI under 45%, and you can put 5%+ down: competitive rate, removable PMI, no upfront fee. FHA wins when credit is 580–680, DTI is tight, or you have a recent bankruptcy or foreclosure inside FHA's shorter seasoning windows. We model both side-by-side over the time you actually plan to keep the loan.

620 minimum on standard conventional (waived for files getting a Fannie DU Approve/Eligible). 640 for single-width manufactured homes or temporary buydowns. Loans requiring PMI typically need 600+ subject to the MI company's overlay. Best pricing kicks in around 740+.

As little as 3% on a first-time-buyer purchase (HomeReady, Home Possible, HomeOne, or Conventional 97), 5% standard, or 20%+ to skip PMI. Second homes 10% minimum, investment properties 15–25% depending on units. Freddie also allows secondary financing (Affordable Second) up to 105% CLTV with an approved DPA program.

PMI is required on conventional loans with less than 20% down — but unlike FHA's MIP, it can be removed. You can request removal at 80% LTV based on original value; it auto-cancels at 78% per federal law. A new appraisal showing the home has gained value can speed removal up. Rates vary by credit and LTV; we quote real numbers upfront.

Stricter than FHA. Chapter 7 or 11 bankruptcy: 4 years from discharge (2 years with documented extenuating circumstances). Chapter 13: 2 years from discharge, 4 years from dismissal. Multiple bankruptcies in 7 years: 5-year wait. Foreclosure: 7 years (3 years with extenuating circumstances). Deed-in-lieu, short sale, and charge-off have their own windows. If you're close to coming out of seasoning, FHA is often the bridge until you can refi into conventional.

In high-cost counties, FHFA allows conforming loan amounts above the national baseline (currently $832,750 for 2026). Those higher-limit loans are called High Balance — same conventional underwriting with slightly different LTV rules. Above your county's High Balance limit you're into Jumbo territory. Use the Conforming Loan Limit Lookup on this page to find your county's cap.

1–4 unit homes (owner-occupied or investment), PUDs (attached or detached), warrantable condos, manufactured homes (multi-width up to 95% LTV; single-width to 80% with a 640+ score), second homes, and investment properties. Freddie has additional review requirements for Florida attached condos.

Yes — and conventional is the standard route, since FHA and VA don't allow non-owner-occupied. Down payment: 15% minimum on a 1-unit purchase, 25% on 2–4 units. Cash-out on investment: 75% / 70% LTV (1-unit / 2–4 unit). Rental income from the subject property can be used to qualify under specific rules.

Rate-and-term refi: owner-occupied 1-unit up to 95% LTV. Cash-out: 80% on owner-occupied 1-unit (75% on 2–4 units). Second-home cash-out: 75%. Investment cash-out: 75% (1-unit) / 70% (2–4 units). There's also a Student Loan Cash-Out variant that refinances and pays off student loans without the standard cash-out pricing hit.

Standard: 2 years of W-2s + recent pay stubs for wage earners; 2 years of personal/business tax returns for self-employed. Big one for established business owners — if you've owned your business 5+ years, we can typically qualify on just 1 year of self-employed tax returns (subject to AUS findings). That's a real advantage when your most recent year is stronger than the year before. Because we're direct with both Fannie and Freddie, we run both DU and LPA on tricky files — they sometimes accept different documentation, and we use whichever helps.

For most borrowers, very little — same conforming limits, similar guidelines, similar rates. Differences show up at the edges: different AUS engines (Fannie's DU vs Freddie's LPA), different overlays on recent bankruptcy / non-traditional income / condo project review (Freddie has stricter Florida condo rules), and different low-down-payment programs (Fannie's HomeReady and Conventional 97; Freddie's Home Possible and HomeOne). Freddie also allows Affordable Second secondary financing up to 105% CLTV with approved DPA, and offers a GreenChoice Energy Mortgage for energy-efficient improvements. Because we're direct with both, we don't have to pick one and hope — we run both engines and use whichever fits your file.

Lets the seller or builder prepay part of your interest for the first 1–3 years, lowering your monthly payment during that period. Common patterns: 2/1 buydown (2% lower year 1, 1% lower year 2), 1/0, or 3/2/1. The seller credit funds an escrow account that subsidizes your payment. Powerful in slower markets — we structure these regularly. Conventional buydowns require a 640+ score.