Traditional Program · Conventional

Conventional Loans — The Standard Choice for Strong-Credit Borrowers

A conventional loan isn't backed by the government — it follows Fannie Mae and Freddie Mac standards. If your credit is solid, it's often the most flexible, lowest-cost path to homeownership.

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Strong credit deserves strong terms. A conventional loan is the workhorse of American homebuying — government-free, widely available, and flexible on rate structure and loan purpose.

What Is a Conventional Loan?

A conventional loan is not offered or secured by a government entity. Instead, most are guaranteed by Fannie Mae or Freddie Mac, two government-sponsored enterprises that set the underwriting standards. That gives lenders confidence to offer competitive rates and terms — and gives you a loan with no government red tape.

Fixed-Rate vs. Adjustable-Rate

Fixed-Rate Mortgages

Your rate and payment stay consistent for the life of the loan — available in terms from 10 to 30 years. Predictable, and easy to refinance later if rates drop.

Adjustable-Rate Mortgages (ARMs)

Save money if you'll be in the home only a few years. Common structures are 5/6, 7/6, and 10/6 — the first number is the years your rate stays fixed; the second is the months between adjustments after that.

Who It's For

Strong-credit borrowers who want the best available pricing
Buyers with 3–20% down looking for flexible structures
Move-up buyers who want to avoid PMI at 20% equity
Renovators & builders using HomeStyle or CHOICERenovation
Investors financing second homes or rentals
Borrowers above conforming limits via jumbo options

Conventional Loan Types

Purchase

Buy a home with as little as 3% down through HomeReady, Home Possible, or HomeOne — or a standard 5–20% down loan.

Refinance

Rate-and-term or cash-out refinancing, plus student-loan cash-out and RefiNow / Refi Possible options.

Renovation

HomeStyle and CHOICERenovation let you finance a fixer-upper's repairs into one mortgage.

Construction

One-time close, manufactured home, ADU, and land loans through CCM's in-house construction team.

Requirements at a Glance

Pros & Cons

Pros

  • Down payments as low as 3%
  • PMI removable at 20% equity
  • No government funding fee
  • Fixed or adjustable rate options
  • Works for primary, second, and investment homes

Cons

  • Higher credit standards than FHA/VA/USDA
  • PMI required below 20% down
  • Tighter debt-to-income limits

Jimmy's tip: If you can comfortably hit 20% down, do the math on PMI vs. a smaller down payment — sometimes keeping cash in reserve and paying PMI is the smarter move.

Conventional Loan FAQs

Straight answers to the questions borrowers ask most. Your loan officer is always your best resource for your specific situation.

What is a conventional loan?
A conventional loan is any mortgage not insured or guaranteed by the government. Most follow Fannie Mae and Freddie Mac standards (called conforming loans) and adhere to conforming loan limits, though jumbo and portfolio options exist above those limits.
How much down payment do I need?
Conventional loans can start as low as 3% down (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), though 5–10% is common and 20% eliminates private mortgage insurance (PMI).
What credit score do I need?
Most conventional programs want a credit score around 620 or higher, with the best pricing reserved for 740+. Your exact rate depends on your full file.
What's the difference between fixed-rate and adjustable-rate?
A fixed-rate mortgage keeps the same rate and payment for the life of the loan. An adjustable-rate mortgage (ARM) fixes the rate for an initial period — commonly 5/6, 7/6, or 10/6 — then adjusts at intervals, with caps protecting you from extreme increases.
Are conventional loans assumable?
Usually not. Conventional loans typically contain a due-on-sale clause, meaning the loan must be paid off when the property is sold or transferred.
Can I use a conventional loan for a renovation or new build?
Yes. Conventional renovation loans (Fannie Mae HomeStyle, Freddie Mac CHOICERenovation) and construction loans (including one-time close) let you finance improvements or a build from the ground up.

Not Sure Which Program Fits?

Jimmy will review your situation and point you to the right traditional loan — no jargon, no pressure.

Jimmy.Nadeau@ccm.com
147 E Lyman Avenue, Suite D & C-1, Winter Park, FL 32789

Your Local Loan Officer

Jimmy Nadeau Senior Loan Officer

CrossCountry Mortgage · Branch #3982 · Winter Park, FL

147 E Lyman Avenue, Suite D & C-1, Winter Park, FL 32789

NMLS #2102442

CrossCountry Mortgage, LLC · NMLS #1444822 · Equal Housing Lender

This page is for informational purposes and is not a commitment to lend. Program availability, guidelines, rates, and terms vary and are subject to change. Your rate may vary. Terms apply.