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Conventional Loans
Flexible conventional financing options with down payments as low as 3% for first-time buyers and competitive terms for experienced homeowners.
No SSN or hard credit pull to start. No obligation.
4.9 from 44 reviews
NMLS ID 2653540
What is a Conventional Loan?
A conforming conventional loan is a mortgage that meets the underwriting guidelines and loan limits established by Fannie Mae and Freddie Mac. As the backbone of the conventional mortgage market, these government-sponsored enterprises purchase qualifying loans from approved lenders, helping maintain stability, liquidity, and competitive interest rates across the housing industry. Conforming conventional mortgages often offer lower borrowing costs, flexible down payment options, and a streamlined financing process for qualified borrowers. Understanding Fannie Mae and Freddie Mac requirements is an important step in determining whether a conventional mortgage is the right home financing solution for your needs. Many lenders add additional requirements for approving these loans on top of the Fannie Mae and Freddie Mac requirements. These additional requirements are called overlays. At HyperSmart, you get institutional pricing (great rates), no overlay options and no 45-day runaround.
Who Should Consider Conventional?
Conventional loans are ideal for borrowers who can put down at least 3% and have steady income. You don't always need excellent credit to unlock the most competitive rates available. Certain program parameters unlock conventional loans to more borrowers than most people expect. First-time buyers, move-up buyers, and anyone refinancing an existing mortgage should start here. HyperSmart also has additional incentives available for qualified first-time buyers.
New Conventional Guidelines Allow Purchase of a Duplex, Triplex, or Fourplex with as Little as 5% Down
A multifamily home, including a duplex, triplex, or fourplex, can be one of the most powerful wealth-building tools available to homebuyers and real estate investors. Today, qualified borrowers can purchase an owner-occupied 2-4 unit property with as little as 5% down using a conventional loan, allowing them to live in one unit while generating rental income from the others. Conventional multifamily financing offers higher conforming loan limits, flexible qualification requirements, and the opportunity to offset monthly mortgage payments with tenant income. For first-time homebuyers, house hackers, and aspiring real estate investors, buying a duplex, triplex, or fourplex can provide a primary residence, rental income, and long-term real estate appreciation in a single investment property.
Key Features
Low Down Payment Options
Qualified first-time buyers may put as little as 3% down. No need to wait years saving for 20%. Subject to credit approval.
No Upfront MI Premium
Unlike FHA loans, conventional loans don't charge an upfront mortgage insurance premium, saving you thousands at closing.
PMI Drops Off
With a 20% down payment, there is no private mortgage insurance. Mortgage insurance falls off once your balance drops to 78% of the original value from scheduled payments.
Flexible Terms
Multiple term options available including fixed and adjustable rates. We'll model scenarios so you pick what fits your goals.
Investment Properties
Conventional loans allow financing for second homes and investment properties, something government loans restrict.
Higher Loan Limits
Conforming limits are updated annually by the FHFA. Limits vary by market and may be higher in designated high-cost areas. Contact us for current limits.
All loans are subject to credit approval. Not all applicants will qualify. Terms, conditions, interest rates, and programs are subject to change without notice. The information provided is for educational and informational purposes only and does not constitute a loan commitment or guarantee of any terms. Consult with a licensed loan officer for specific rate and term information applicable to your situation. NMLS #2653540. Equal Housing Lender.
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