Flexible does not mean automatic
Is a conventional loan right for you?
Conventional mortgages are not insured by FHA, VA, or USDA. Conforming loans are structured for sale to Fannie Mae or Freddie Mac and must fit applicable loan-size, borrower, occupancy, and property rules.
A useful fit often begins here
- You want a standard baselineCompare a conforming option with every program you can actually use, holding the property and transaction assumptions constant.
- Your occupancy needs flexibilityFannie Mae describes eligible conventional occupancy categories as principal residence, second home, and investment property, each with different rules.
- You want to evaluate cancellable mortgage insuranceBorrower-paid private mortgage insurance may be removable under applicable law and investor rules, unlike some government mortgage-insurance structures.
- Your loan fits the applicable conforming limitA larger loan may require a jumbo or other nonconforming option even when the rest of the file is strong.
When another path may be stronger
When another mortgage may be a better choice
FHA, VA, USDA, jumbo, renovation, or alternative-documentation financing may solve a material eligibility, property, cash, or documentation problem more directly. Compare complete costs and conditions rather than assuming “conventional” means cheaper or easier.