Conventional Mortgages

  1. Home
  3. Loan Options
  5. Conventional Mortgages
Definition

Flexible, Reliable Financing for Your Home

A conventional home loan is a mortgage that is not insured or guaranteed by a federal government agency, such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), or the U.S. Department of Agriculture (USDA). These loans are originated and funded by private lenders and typically conform to guidelines established by Fannie Mae and Freddie Mac.

Description

Trusted Partnerships Built

Direct Capital Mortgage, we believe strong partnerships drive better results for our clients. We collaborate with leading financial institutions, real estate professionals, and industry experts to provide secure, transparent, and seamless mortgage experiences.

Down Payment

As low as 3% for qualified first-time or low-to-moderate income borrowers; 5–20% is more typical. A 20% down payment eliminates the need for private mortgage insurance (PMI).
Credit Requirements

Generally require higher credit scores than government-backed loans.
Private Mortgage Insurance (PMI)

Required when the down payment is less than 20%, but PMI can be removed once sufficient equity is achieved.
Loan Limits

Subject to conforming loan limits set annually by the Federal Housing Finance Agency (FHFA).
Property Types

Available for primary residences, second homes, and investment properties.
Rates and Terms

Offered in fixed-rate and adjustable-rate options, with competitive interest rates for well-qualified borrowers.
Start today

Ready to Take the Next Step?

Experience trusted service, personalized mortgage programs, and expert guidance that make your homeownership journey smooth and successful.

Get started