Conventional Loans
The most common home loan. Low down payment options, and many ways to use it.
Who This Fits
A conventional loan is not backed by the government. It follows rules set by Fannie Mae and Freddie Mac. It is often a great fit if you have steady income and fair-to-good credit. It also works for second homes and rentals, which some other loans do not allow.
Your Choices
- Fixed rate: your rate and principal-and-interest payment stay the same for the whole loan, often 15 or 30 years.
- Adjustable rate (ARM): a set rate for the first few years, then it can go up or down.
- Low down payment options: some first-time and lower-income buyers can put as little as 3% down.
- Many home types: a home you live in, a second home, or a rental.
Basic Requirements
These are general guidelines. Each lender has its own rules, and programs can change.
- Down payment: as low as 3% for some first-time buyers. Many people put 5% to 20% down.
- Mortgage insurance: if you put less than 20% down, you usually pay private mortgage insurance (PMI). It can often be removed later, once you have enough equity.
- Credit: a better score usually means a better price.
- Loan size: up to the conforming loan limit. For 2026, the Federal Housing Finance Agency (FHFA) set the one-unit conforming loan limit at $1,029,250 in the Nashville-area counties (Davidson, Williamson, Rutherford, Sumner, Wilson, and Maury). Source: FHFA 2026 county loan limit list, published November 2025. FHFA usually sets the next year's limits each November, so ask Mark for the newest number.
- Income and debts: the lender checks that the payment fits your budget.
How It Works
- Talk: Mark learns about your credit, income, and savings.
- Compare: he checks conventional options from many lenders.
- Pre-approval: you learn your budget.
- Apply and appraisal: the lender checks your papers and the home.
- Close: Mark keeps everyone on track.
Questions People Ask
How much do I need to put down?
Some first-time buyers can put down as little as 3%. Others put down 5%, 10%, or 20%. More down means a smaller loan and often a lower payment.
Can I get rid of PMI?
Often, yes. Once you build enough equity, PMI can usually be removed. Mark can explain the rules for your loan.
Is conventional better than FHA?
It depends. With strong credit, conventional often costs less over time. With lower credit, FHA may cost less. Mark can compare both for you.
Related
FHA Loans · First-Time Home Buyers · Jumbo Loans · All Calculators · Areas We Serve
All loans depend on credit, income, and property review. Not everyone will qualify. Programs can change. This is general information, not a loan offer. Mark Jost, NMLS #150914. Heathrow Mortgage, Company NMLS #1849599. Equal Housing Opportunity.