Typically viewed as the 20% down mortgage solution, conventional loans come in all shapes and sizes. Direct Mortgage Loans offers a variety of conventional loan products that provide advantageous benefits for our borrowers.

What is a conventional loan?

The conventional loan is a type of conforming loan, meaning that it meets the conventional loan requirements for a Fannie Mae or Freddie Mac loan, though it is not backed by the government. That makes it simpler to comply with these loans. Once viewed as the 20% down mortgage solution, conventional loans are now available to clients with down payment options as low as 3%. Direct Mortgage Loans offers a variety of conventional loan products that provide advantageous benefits for our borrowers.

Here are some of the conventional home loan mortgage solution’s features:

  • Range of down payment options. For a first-time home buyer, the minimum down payment may be as low as 3%. That’s not guaranteed, and a lot will depend on your credit score, the loan amount, and what qualifies for a conventional loan. You can speak to us and we’ll help walk you through the options.
  • Mortgage Insurance Flexibility. Unlike government backed loan options through FHA and USDA, conventional loans offer options for your mortgage insurance. Should you put down 20% or more on your purchase, this is not applicable as mortgage insurance is not required for purchases with 20% down or more. If you put down less than 20%, you can work with your loan officer to determine the mortgage insurance option to best fit your scenario. Whether it’s borrower paid mortgage insurance or lender paid mortgage insurance, here at Direct Mortgage Loans our loan officers will work through multiple scenarios with you to fit your situation best.
  • Less restrictive property guidelines.
  • Low on down payment funds? Consider these options:

    • Fannie Mae HomeReady & Freddie Mac Home Possible
    • Affordable housing programs that offer borrowers the opportunity to purchase a home with a 3% down payment.
apply for a conventional loan