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Conventional Financing

A conventional loan is a mortgage that is not guaranteed or insured by any government agency like the FHA or Veteran’s Affairs. Conventional loans are increasingly popular because of relatively low rates and flexible guidelines.



Who qualifies for Conventional Financing?

  • Borrowers with good credit - scores of 720+ are typically the best candidates

  • Loans are available for credit scores as low as 620, generally with a larger down payment.

  • Down Payments as low as 5% are available

Please share your specific circumstances with your First American Mortgage loan officer, because we process, underwrite, and prepare all our loans in-house, we can tailor a solution just for you.


Conventional loan requirements for “conforming” loans

  • You can use a conventional loan to buy a primary residence, second home, or rental property.

  • The baseline maximum conforming loan limit for one-unit properties as of 2023 is $726,200. If you need a loan bigger than this amount, we do provide Jumbo Loans.

  • Financial documents must show the borrower can repay the mortgage obligation, including (but not limited to): W2 forms for the past two years, most recent 30-day pay stubs showing year-to-date earnings, tax returns for the past two years, and credit reports.

  • Private Mortgage Insurance (PMI) is required for down payments of less than 20%. PMI may be canceled when your home equity reaches 78%


Contact your loan officer to see if conventional financing is right for you!

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