Conventional loans are types of loans that are specifically tied to real property. From a first-time homebuyer to current homeowners looking to make a move, conventional home loans have benefits. You also have the option of a fixed-rate or adjustable-rate.

Benefits:

• Minimum down payment from as low as 3%
• Choose from fixed rate or adjustable rate
• Loan terms from 10 to 30 years
• Flexible terms

Requirements:

• Primary residence, second home, or rental property
• Financial documents required but not limited to:
  • W-2 forms for past 2 years
  • Tax returns for past two years
  • Recent pay stubs showing year-to-date earnings
  • Credit reports
• Credit score of at least 620 or higher

Fixed-rate:

A fixed-rate mortgage means you pay the same rate throughout the life of the loan. Your payment remains the same for the life of the loan, assuming taxes or insurance rates do not change. This option provides a predictable monthly payment when budgeting.

Adjustable-rate:

An adjustable-rate mortgage means the interest rate is variable and will change over the life of the loan. How often it changes will depend on the terms of the loan. Most adjustable-rate mortgages will remain locked for a set period of time, then the loan will do a reset with a new interest rate based on current market rates.

Every year, from October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price.

Conforming Loan Limits:

Number of Units	Maximum original principal balance	Alaska, Guam, Hawaii, and U.S. Virgin Islands only
1	$647,200	$970,800
2	$828,700	$1,243,050
3	$1,001,650	$1,502,475
4	$1,244,850	$1,867,275

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