Loan options / Conventional loans
The standard loan,done by a personwho answers.
A conventional loan is the mortgage most people picture: not government-insured, backed by Fannie Mae or Freddie Mac, with down payments from 3% and mortgage insurance that goes away once you have equity. Strong credit gets the best pricing here, and there is more flexibility on second homes and investment properties than any other program.
Who it's for
For buyers with solid credit and a plan.
Pricing is tiered by credit score and down payment, so the better your file, the better this loan gets.
Scores in the 700s
Lower rates and cheaper mortgage insurance than FHA at the same down payment. Above 740 you are in the best pricing tier.
No mortgage insurance at all
Skip PMI entirely and get the cleanest payment structure available.
Vacation and family homes
Conventional is the main path for a second home, typically with 10% down.
Rental property
Finance a rental with 15–25% down. Rental income from the property itself can help you qualify.
What you'll need
What conventional underwriting looks for.
- Credit score620 is the usual floor; pricing improves in tiers up to 740 and above. Patriot's minimum varies by program and is subject to change; your loan officer will confirm it.
- Down paymentAs little as 3% for first-time buyers on a primary residence through Fannie Mae and Freddie Mac programs; 5% is more common; 20% removes mortgage insurance.
- Debt-to-incomeGenerally up to 45%, and up to 50% with strong compensating factors through automated underwriting.
- Income historyTwo years of consistent employment or self-employment, documented with pay stubs, W-2s, or tax returns.
- ReservesSome scenarios, especially second homes and investment properties, require cash reserves of two to six months of payments after closing.
- Loan amountMust be at or below the conforming limit for your county. Above that, see our jumbo program.
How it works
From first call to closing. Five cards, one person the whole way.
Talk to your loan officer
One call, one person. You get a name, an NMLS number, and a direct line, and that person stays on your file until you close.
Get pre-approved
We verify income, pull credit, and lock down what you can afford. Most pre-approvals are ready within a business day.
Shop with confidence
Your pre-approval letter tells sellers you are a real buyer. Your loan officer is available to your agent for questions on any offer.
Appraisal and underwriting
The appraisal is ordered the day you go under contract. Every condition and milestone comes to you by text and email.
Close and move in
Sign, fund, and get your keys. No prepayment penalty if you refinance or sell later.
Ways to use it
More property types than any other program.
Purchase
Primary residences, second homes, and investment properties; single-family, condos, townhomes, and 2–4 units.
Rate-and-term refinance
Lower your rate or shorten your term. Also the standard route out of FHA mortgage insurance once you have 20% equity.
Cash-out refinance
Access equity at up to 80% of your home's value for renovations, debt consolidation, or investment.
Low-down-payment programs
Fannie Mae HomeReady and Freddie Mac Home Possible offer 3% down with reduced mortgage insurance for income-qualified buyers.
Questions
Straight answers.
How much do I need down?
3% for qualifying first-time buyers, 5% for most others on a primary home, 10% for a second home, and 15–25% for an investment property.
When does mortgage insurance go away?
You can ask to cancel it once your balance reaches 80% of the original value, and it is removed automatically at 78%. Appreciation can get you there sooner with a new appraisal.
What is the conforming loan limit?
The maximum loan Fannie Mae and Freddie Mac will buy, set by the FHFA each year and higher in designated high-cost counties. Your loan officer will confirm the number for the county you are buying in.
Fixed or adjustable?
Fixed rates are the default for most buyers. An adjustable-rate mortgage can make sense if you plan to sell or refinance within the fixed period. We show you both.
Is conventional better than FHA?
Not always. With scores above roughly 680 and 5% or more down, conventional is usually cheaper. With lower scores or higher debt ratios, FHA often wins. We run the comparison for every buyer who qualifies for both.
Can I use gift funds?
Yes, for the full down payment on a primary residence in most cases. Rules are stricter for second homes and investment properties.
Talk to a loan officer in your state.
Licensed by name, in the state you are buying in. No call center, no hand-offs.
Conforming loan limits are set annually by the Federal Housing Finance Agency. Program guidelines are set by Fannie Mae and Freddie Mac and are subject to change. Belem Servicing LLC d/b/a Patriot Home Mortgage, NMLS #715386. Equal Housing Lender.