Conventional home loans boast great rates, lower costs, and homebuying flexibility. They are the loan option of choice for about 60% of all mortgage applicants. Conventional home loans are also known as conforming loans, since they conform to a set of standards set by Fannie Mae and Freddie Mac.
- You can use a conventional home loan to buy a primary residence, second home, or rental property.
- Conventional home loans are available in fixed rates, adjustable rates (ARMs), and offer many loan terms usually from 10 to 30 years.
- Down payments as low as 3%.
- No monthly mortgage insurance with a down payment of at least 20%.
- Mortgage insurance is cancelable when home equity reaches 20%.