01How much of a down payment do I need?+
As little as 3% down for eligible primary-home buyers. You do not need 20% down to get a conventional loan. Second homes and investment properties require more, and closing costs are separate from the down payment.
02When does mortgage insurance go away?+
Borrower-paid PMI can usually be canceled once your loan balance reaches 80% of your home’s original value, provided you meet the payment-history and other requirements. It generally ends automatically at the scheduled 78% point if your payments are current. Putting 20% down typically avoids PMI from the start.
03What credit score do I need?+
620 is a common starting point, and some lenders require higher scores. Certain automated underwriting approvals can allow lower scores. A higher score can improve your pricing; income, debts, and down payment also affect approval.
04Is there a maximum loan amount?+
Yes. Conforming conventional loans have annual limits based on the county and number of units. Financing above that limit is generally considered jumbo. The limit applies to the loan amount, not the home’s purchase price.
05Can I buy a second home or investment property?+
Yes. Conventional loans can finance primary homes, second homes, and investment properties. Second homes and investment properties generally require larger down payments and more reserves, and typically carry higher rates than a primary home.
06Can the seller help with closing costs?+
Yes. A seller can contribute toward eligible closing costs and prepaid expenses, within program limits. The maximum depends on your down payment and whether the property is a primary home, second home, or investment. Seller credits cannot cover your required down payment.
07Can I refinance with a conventional loan?+
Yes. Conventional loans offer both rate-and-term and cash-out refinancing. A rate-and-term refinance changes your existing financing; a cash-out refinance lets you access equity through a larger mortgage. Both involve closing costs. I’ll help you compare those costs with the potential savings or cash received to see whether refinancing supports your goals.
