Fannie Mae and Freddie Mac programs for buyers with established credit. Conventional PMI may be cancelled by request at 80% of original value (subject to conditions) and generally terminates automatically at 78% if you are current.
The standard route for established credit
Fixed or adjustable rate from a 620 score with 5% down. Private mortgage insurance may be cancelled by request at 80% of original value (subject to conditions) and generally terminates automatically at 78% if you are current; there is no upfront insurance premium like FHA.
3% down with gift funds allowed
Fannie Mae and Freddie Mac programs for moderate-income buyers. 3% down from a 620 score, gift funds and boarder income allowed, reduced mortgage insurance, and a short homebuyer course.
Above the conforming loan limit
For homes priced above the Fannie Mae and Freddie Mac limit for your county. Stronger credit, larger down payment, and cash reserves are typical requirements.
Conventional financing beyond your primary home
Vacation homes from 10% down and rental properties from 15% to 25% down. Expected rental income can help you qualify with full income documentation.
Official guidelines: Fannie Mae: HomeReady mortgage · Freddie Mac: Home Possible · FHFA: Conforming loan limits
3% for first-time and moderate-income buyers through HomeReady or Home Possible, and 5% for standard conventional financing, both from a 620 score. Private mortgage insurance is typically required with less than 20% down. You may request cancellation once the loan balance reaches 80% of the original value, subject to eligibility conditions; automatic termination generally occurs at 78% based on the amortization schedule if you are current on payments. Unlike FHA insurance, conventional PMI is designed to end.
A jumbo loan is a mortgage above the conforming limit that Fannie Mae and Freddie Mac set for your county each year. Because it is not sold to those agencies, lenders typically ask for a 680 to 700 score, 10% to 20% down, and cash reserves after closing.
Yes. Conventional financing covers second homes from 10% down and investment properties from 15% to 25% down. Expected rent from the property can help you qualify, and full income documentation is required. For options without income documents, see our DSCR programs.
Send us your scenario: income, credit, and savings. We'll tell you in plain language which programs apply, in English or Spanish.
Figures shown are typical program guidelines and vary by lender, property, and your profile. This is not a commitment to lend. All loans are subject to credit and underwriting approval. Programs, rates, and requirements are subject to change without notice.
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