Conventional loans are backed by Fannie Mae and Freddie Mac. They offer the widest range of terms, the lowest long-term cost for well-qualified borrowers, and the most flexibility across property types.
620
3% (first-time), 5% (otherwise)
$806,500 baseline / $1,209,750 high-balance
80% LTV
As little as 3% for a first-time buyer on a primary residence, 5% otherwise. Anything under 20% requires PMI, which we model as part of the total monthly cost.
$806,500 baseline, up to $1,209,750 in high-cost counties like San Francisco, Marin, Alameda, and Contra Costa.
Yes. Once you reach 80% loan-to-value based on current value, you can request removal, often supported by an appraisal. It also cancels automatically at 78% of the original value.
A dual-income couple buying their first home in Petaluma with limited savings but strong credit and no consumer debt.
Conventional beat FHA by roughly $180 per month once mortgage insurance was compared, and the PMI drops off entirely once the balance hits 78% of value.
Selling an existing home and rolling equity into a larger property, closing both transactions in the same week.
Staying at the high-balance conforming limit instead of crossing into jumbo saved a meaningful amount in rate and avoided jumbo reserve requirements.
Examples are illustrative composites of typical files, not offers of credit or guarantees of terms. Your actual options depend on your credit, income, property, and current market pricing.