Conventional and jumbo loans
A conventional loan is a mortgage not insured by a government agency. Conforming conventional loans follow Fannie Mae and Freddie Mac guidelines and stay within the yearly loan limit; jumbo loans go above that limit.
Who it's for
- Buyers with steady income and established credit
- Move-up buyers and relocations
- Buyers in higher-priced neighbourhoods (jumbo)
What you'll typically need
- Down payment from as little as 3% on some conforming programs
- Credit and debt-to-income within program guidelines
- Reserves, especially for jumbo loans
- An appraisal of the home
Guidelines vary by lender and change over time. A licensed loan officer confirms what applies to you.
The good
- Mortgage insurance can usually be removed later
- Wide choice of terms
- Works for primary, second and investment homes
Trade-offs to know
- Stricter credit than some government loans
- Jumbo loans need larger reserves
- Pricing depends heavily on credit and down payment
Step by step
- 01Pick your LO
- 02Pre-approval
- 03Offer accepted
- 04Underwriting
- 05Closing
Other programs
Conventional loansJumbo loansRefinanceFirst-time buyers
On a real site each program gets its own page like this one.
Talk it through with The Lanternbridge branch
Questions are free. So is a first look at your numbers.
Find my loan officer