Conventional Loans

Conventional

Conventional or Conforming loans are available at Loan Direct with more flexibility than other lenders.  We use a common sense approach to underwriting. A conventional loan is not associated with the FHA, USDA, or VA. It generally requires at least 5% down (though it can be as low as 3% for some buyers), but private mortgage insurance (PMI) is required for down payments of less than 20%. Paying PMI will add to the cost of your monthly payments.

• Conforming Loan Amount:   $150,000 – $726,200
• High-Cost areas:    $726,201 – $1,089,300
• Down payment as low as 5%
• Flexible credit requirement
• Credit as low as 620
• Flexible income documentation option
• Purpose: Primary Residence Only

Pros

• No PMI is required if the down payment is 20% or more
• Larger down payments may help build home equity earlier

Cons

• PMI is required for down payments under 20%
• More difficult requirements for income and credit score

Uses

• Available for most types of property, including second home and investment properties