Conventional Loan Programs

Conventional loan programs are the most popular loans offered by Mlend and are the most common loans used in the marketplace today.  Conventional loans can be used for first home purchases, refinances, and investment properties.  These loan programs are not guaranteed or insured by the federal government and underwritten to conform to the guidelines set forth by Fannie Mae and Freddie Mac.  Eligibility requirements are dependent on, amongst other things:

• the appraised value of your desired home
• your credit score
• your cash reserves
• your debt-to-income ratio

Under conventional loan guidelines, first mortgages for single-family homes are limited to $417,000.  However, the Housing and Economic Act of 2008 grants loan limit exceptions up to $729,750 for homes in “high-cost areas,” including areas of Maryland, Pennsylvania, District of Columbia, and Virginia.

Conventional loan programs generally required a 20 percent down payment.  However, the required down payment can be lowered by purchasing private mortgage insurance or accepting a higher interest rate.  In some cases, your down payment on a conventional loan could be as low as three percent.