Conventional Fixed Rate Mortgages – You can typically put down as little as 3% with our 30, 20, 15, and 10 year fixed rate mortgage solutions. Borrowers who put down less than 20% on a conventional loan will likely have to pay private mortgage insurance along with their monthly mortgage obligations in the early years of their loan until they build up additional equity.
A conventional mortgage is typically considered a loan that conforms to the guidelines set forth by Freddie Mac and or Fannie Mae, the two government sponsored enterprises (GSEs) that provide liquidity in the mortgage market.
Whenever someone refers to a “conventional loan” they are typically referring to conforming aka conventional mortgages that are eligible for purchase by Fannie Mae and Freddie Mac.