MORE OPTIONS.MORE FLEXIBILITY.MORE OPPORTUNITY.
Conventional financing offers flexible down payment options, competitive mortgage insurance, special income-based programs, investment property opportunities, and advantages many buyers never realize exist.
- Low Down PaymentACTIVE
- Reduced PMI OpportunitiesACTIVE
- AMI-Based ProgramsACTIVE
- Recast OpportunitiesACTIVE
- Investment PropertiesACTIVE
CONVENTIONAL FINANCING IS NOT JUST ONE PROGRAM
LOOK UP YOUR OFFICIAL AREA MEDIAN INCOME
Conventional programs like HomeReady® and Home Possible® unlock benefits based on the property's Area Median Income. We connect you directly to Fannie Mae's official lookup so the number is always accurate.
Your property's Area Median Income (AMI) may unlock special conventional loan benefits that many buyers never realize exist.
Special conventional financing opportunities for eligible borrowers.
Expanded homeownership opportunities for qualifying buyers.
Potential mortgage insurance advantages through select conventional programs.
Programs that may require less cash upfront than many buyers expect.
- 1Click the button below to open Fannie Mae's official lookup.
- 2Enter Subject Property zipcode on the Fannie Mae site.
- 3Bring the AMI % back — we'll match you to HomeReady, Home Possible, and reduced-PMI tiers.
- ≤ 50% AMIVery-low income — may qualify for deepest subsidies and assistance programs.
- ≤ 80% AMIHomeReady® and Home Possible® eligible — reduced PMI, flexible down payment.
- ≤ 100% AMIMay still qualify for select conventional benefits in designated areas.
- > 100% AMIStandard conventional financing — many other competitive options available.
HomeReady® is a registered mark of Fannie Mae. Home Possible® is a registered mark of Freddie Mac. Program eligibility is subject to complete application, income verification, property eligibility, and investor guidelines.
THE BIGGEST CONVENTIONAL LOAN MYTH
- Expensive
- Lasts forever
- Always a bad thing
- Often lower than many buyers expect
- May allow less money down
- May be removed when eligible requirements are met
- Can preserve cash for savings, emergencies, renovations, or investments
DO YOU REALLY NEED 20% DOWN?
Cash that could go toward reserves, renovations, future opportunities — or simply peace of mind.
For illustration only. Down payment, mortgage insurance, rate, and monthly payment outcomes vary by program, credit profile, occupancy, property type, and market conditions.
Not Every Mortgage Program Evaluates Property Condition the Same Way
Every mortgage appraisal evaluates a home's overall safety, structural integrity, and marketability. However, different loan programs may apply different property condition requirements depending on investor guidelines, appraisal findings, and the characteristics of the property.
- • Functional utilities
- • Safe electrical systems
- • Secure handrails
- • Heating and cooling
- • Roof condition
- • Foundation
- • Windows and doors
- • Water intrusion
- • Overall structural stability
- • Livability
- • Overall condition
- • Comparable market appeal
- • Remaining economic life
"Regardless of loan type, appraisers are primarily determining whether a property is safe, structurally sound, and marketable."
Government-backed loan programs often place additional emphasis on certain health and safety items identified during the appraisal process.
- Peeling paint (particularly on older homes)
- Missing handrails
- Broken windows
- Certain safety hazards
- Repairs required before closing
Requirements vary by loan program and appraisal findings.
Conventional financing still requires the home to be complete, safe, structurally sound, and marketable. Depending on investor guidelines and appraisal findings, there may be greater flexibility for certain non-critical cosmetic conditions.
- Worn flooring
- Outdated finishes
- Cosmetic updates
- Minor deferred maintenance
- Functional older homes
Property condition requirements always depend on the appraisal and lender guidelines.
Many buyers assume a home must be completely updated to qualify for financing. In reality, appraisers are primarily evaluating whether the home is safe, structurally sound, and marketable — not whether it has modern finishes or recent renovations.
Our goal is not to convince you one loan program is better than another. It's to help you understand how different financing options evaluate homes so you can make informed decisions before writing an offer. Choosing the right financing often depends on both your financial goals and the condition of the property — not simply the interest rate.
Property condition requirements vary based on appraisal findings, investor guidelines, lender overlays, property type, and overall marketability. The examples shown are educational and should not be interpreted as guarantees of loan approval or appraisal outcomes.
Keep Your Rate. Lower Your Payment.
A mortgage recast may allow eligible homeowners to reduce their monthly payment after making a large principal payment — without refinancing or replacing their current interest rate.
Make a lump-sum principal payment after closing.
Your loan servicer recalculates the payment based on the lower balance.
Your monthly payment may decrease while your interest rate stays the same.
Use sale proceeds toward principal after closing.
Apply a bonus toward your loan balance.
Use funds from investments or asset sales.
Apply unexpected funds toward your mortgage.
We do not earn compensation when a borrower completes a mortgage recast with their loan servicer. We include this because educated homeowners make better long-term mortgage decisions.
Recast availability, fees, minimum principal reduction, and eligibility vary by loan servicer and loan program. Contact your loan servicer to confirm options.
A LOAN PROGRAM BUILT FOR OPTIONS
WHICH OPTION FITS YOU BEST?
On a $300,000 FHA loan, the upfront mortgage insurance premium could add approximately $5,250 to the starting loan balance.
Illustrative example only. Actual figures depend on loan terms and borrower profile.
COMMON CONVENTIONAL LOAN QUESTIONS
GUIDANCE BEYOND THE LOAN PROGRAM
YOUR CONVENTIONAL OPTIONS MAY BE BETTER THAN YOU THINK.
Discover which conventional financing opportunities may fit your goals.