Conventional Mortgage Loan West Chester, Mason & Liberty Township, OH

Your Keys to Home Ownership

What Are Conventional Loans?

A conventional mortgage loan is a mortgage that is not insured or guaranteed by the government but rather backed by Fannie Mae or Freddie Mac. Popular among homebuyers in West Chester Township, Mason, and Monroe, OH, these loans offer flexibility in property types, down payment options, and borrower qualifications. Ideal for individuals with strong credit and stable finances, conventional loans can be used to purchase primary residences, second homes, or investment properties.

Types of Conventional Loans

Fixed Rate Mortgages

Fixed-rate loans offer consistent interest rates and monthly payments for the entire term—most commonly 15 or 30 years. This option provides stability and peace of mind, especially for long-term homeowners who want to avoid market fluctuations.

Adjustable-Rate Mortgages (ARMS)

ARMs begin with a lower fixed interest rate for an initial period—typically 3, 5, 7, or 10 years—followed by annual adjustments based on market conditions. This loan type may be a smart choice if you plan to move or refinance before the fixed period ends.

High-Balance (Jumbo Conforming) Loans

These loans exceed the standard conforming limit of $766,550 but still fall within maximum loan amounts set by Fannie Mae and Freddie Mac. High-balance loans often require a higher credit score and a larger down payment due to the increased loan size.

Conventional Rate-and-Term Refinance

A rate-and-term refinance allows you to replace your current mortgage with a new one—typically to secure a lower interest rate or switch between a fixed and adjustable-rate loan. Most lenders require at least 10% equity in the home for this option, as it does not involve cashing out equity.

Conventional Loans Mortgage Highlights

Backed by Fannie Mae and Freddie Mac

Available for primary residences, vacation homes, and rental properties

Eligible property types include single-family homes, multi-unit properties, and condominiums

Maximum standard loan limit up to $766,550

High-balance loan options available with up to 95% financing

Financing available with as little as 3% down (97% LTV) for qualified buyers

Flexible private mortgage insurance (PMI) solutions based on credit and down payment

Enjoy competitive interest rates and favorable loan terms

Manufactured homes may qualify depending on lender and property criteria

Conventional loans are a great option for borrowers with strong credit and stable income. These loans are not insured by the government but are backed by Fannie Mae or Freddie Mac, which helps keep rates competitive and flexible. Because they aren’t government-backed, conventional loans often require less documentation than FHA, VA, or USDA loans—making the process quicker and easier for well-qualified buyers.

For home purchases, most lenders require a down payment between 5% and 20%, depending on your credit profile and other factors. If you’re refinancing, you’ll typically need at least 10% equity in your home.

Conventional financing can be used for a variety of property types, including single-family homes, approved condos, townhomes, and 1–4-unit properties. These loans are also available for primary residences, second homes, and investment properties—giving borrowers a wide range of options depending on their goals.

Conventional Loans FAQ

Can I use a conventional loan to buy a second home or rental property?

Yes. Conventional loans can be used not only for primary residences, but also for second homes and investment properties. Keep in mind that second homes and rentals typically have stricter requirements, such as higher down payments and stronger credit profiles.

Do I need mortgage insurance for a conventional loan?

If your down payment is less than 20%, most lenders will require private mortgage insurance (PMI). The good news is that PMI can be removed once you reach approximately 78% loan-to-value (LTV) through payments or home appreciation.

How long does it take to close a conventional mortgage?

On average, closing a conventional loan takes about 30 days, although timelines can vary depending on the lender, the complexity of your file, and how quickly documentation is provided.

How much is the minimum down payment for a conventional mortgage?

The minimum down payment can be as low as 3% for qualified first-time homebuyers. However, putting down 5% to 20% is more common, especially for those looking to avoid paying private mortgage insurance (PMI).

What credit score do I need to qualify for a conventional loan?

Most conventional loan programs require a minimum credit score of 620, but a score of 680 or higher will help you secure more favorable terms and lower interest rates. The better your credit, the better your loan options.

What’s the difference between a conventional loan and an FHA loan?

The main difference is that conventional loans are not government-insured, while FHA loans are backed by the Federal Housing Administration. FHA loans tend to have lower credit score requirements but include mortgage insurance for the life of the loan. Conventional loans offer more flexibility for those with good credit and can be more cost-effective in the long run.

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Imperial Home Loans is excited to work with you to help get you the loan you want. Please give us a call today or fill out the contact form, and we will get back to you within one business day. Thank you.

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