Conventional home loans · Buy or refinance
The most common way to buy a home, built around your plans.
A conventional loan has no government agency behind it, so it can finance the home you live in, a second home or a rental. Strong credit and steady income earn its better pricing, and the mortgage insurance can come off once you’ve built equity.
See conventional next to your other options, with the full costs of each.
Often costs less with strong credit
With good credit and a solid down payment, a conventional loan often costs less over time than a government-backed loan.
Mortgage insurance that ends
Unlike FHA’s, conventional mortgage insurance can be canceled once you’ve built enough equity, and it ends on its own at a set point.
One loan for any home
Finance the home you live in, a second home or a rental. Government-backed loans cover only the home you live in.
Weighed against every option
Your loan officer prices conventional next to FHA and the other loans open to you, so you choose on the full costs, not a headline.
What happens after you press the button.
Your loan officer reaches out
Larry reads what you send personally and gets in touch to talk it through.
What you’ll talk about
The home you want, your income, your savings and how long you plan to stay, so the options fit your plans.
What to have handy
A rough idea of your income, savings and price range. Documents come later, when you apply.
Who it fits
See my conventional optionsBuyers and homeowners with steady income and established credit.
- First-time and repeat buyers
- Second-home buyers
- Investors buying a rental
- Homeowners refinancing out of another loan
What you’ll need
See my conventional optionsHave these ready when you apply. Your loan officer confirms exactly what your file needs.
- Recent pay stubs and W-2s, or tax returns if you’re self-employed
- Bank statements for your down payment and savings
- A photo ID
- Details of your debts, such as car loans and credit cards
Conventional or FHA?
| Conventional | FHA | |
|---|---|---|
| Backed by | No government agency | The Federal Housing Administration |
| Credit | Rewards stronger credit | More flexible with credit |
| Mortgage insurance | Can be removed once you have enough equity | Upfront and annual premiums, for a period set by the loan |
| Homes | Your home, a second home or a rental | The home you live in |
Common questions
Is a conventional loan better than FHA?
It depends on your credit, your savings and the home. Conventional loans often cost less over time for borrowers with strong credit, while FHA loans can be easier to qualify for. Compare both, with the full terms of each.
How much do I need for a down payment?
It depends on the loan, the home and your credit, and it may be less than you expect. Putting down less usually means paying mortgage insurance. Your loan officer can show you the options side by side, with the full terms of each.
Can I remove mortgage insurance later?
Usually yes. On most conventional loans you can ask to cancel it once you have built enough equity, and it ends on its own at a set point.
What credit score do I need?
Lenders set a minimum, and a higher score usually earns better pricing. A short conversation and, with your permission, a credit check tell you where you stand.
Can I use a conventional loan for a second home or a rental?
Yes. Conventional loans can finance the home you live in, a second home or an investment property, with different requirements for each.
What is a conforming loan limit?
The most a conventional loan that follows Fannie Mae and Freddie Mac guidelines can be, set each year by county and higher in some high-cost areas. Above it, a jumbo loan takes over.
Should I choose a fixed or an adjustable rate?
A fixed rate keeps your principal and interest the same for the life of the loan. An adjustable rate starts fixed for a set period, then can move up or down within limits. Which fits depends on how long you plan to keep the loan.
Will checking my options affect my credit?
Answering a few questions doesn’t check your credit. A credit check comes later, only with your permission, and your loan officer can explain how it may affect your score.
What if I don’t qualify?
Your loan officer tells you why and what would change the answer, and can show you FHA or another program that may fit better.
What does a conventional loan cost?
Closing costs such as lender fees, an appraisal and title charges, plus mortgage insurance if you put down less. Your Loan Estimate lists every cost before you commit.
Try the numbers.
See the monthly payment for the price and down payment you have in mind. Use the real property taxes and insurance for the home.
Mortgage Calculator
Talk to Larry.
Questions about this loan, answered by phone or in person.
Call or text
Office
5225 Old Orchard Rd. Suite 20
Chicagoland, IL 60077
Reviews
What clients say.
4.8
Larry is a fantastic lender and did a wonderful job with my client. He was very proactive in answering questions before they were asked.
Kevin Stark ·
Larry and his team were great to work with—clear and proactive communication and fees were very reasonable. They worked hard to make sure I received the best deal possible.
Vince Klos ·
Great Experience, Totally will use Larry from New American Funding for all my future business and personal investment's!
Lee Bertucci ·
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Where to go from here.
Know your loan, then find the home.
Start with a few questions, or book a call with Larry and talk it through first.
(224) 595-8600