Conventional Loans

Flexible Mortgage Options With Competitive Rates

Conventional Loans remain one of the most popular mortgage options for homebuyers and homeowners nationwide. Backed by private lenders rather than government agencies, these loans offer flexible terms, competitive interest rates, and some of the most attractive financing options available today.

With more than 20+ years of mortgage lending experience, Jesse Schwager helps borrowers across Pennsylvania, New Jersey, Delaware, Virginia, and Maryland understand Conventional Loan guidelines, compare rates, and secure financing that aligns with their short-term and long-term financial goals.

What Are Conventional Loans?

Conventional Loans are mortgages not insured by the federal government. They are backed by Fannie Mae and Freddie Mac and follow standardized guidelines that help borrowers secure affordable financing when they meet eligibility requirements.

These loans offer excellent benefits for borrowers with strong credit histories, stable income, and the ability to make a down payment.

Benefits of Conventional Loans

Conventional Loans offer several advantages over government-backed loans, including:

Competitive Interest Rates: Well-qualified borrowers can secure some of the most competitive rates in the industry.
Flexible Down Payment Options: Down payments can start as low as 3% for eligible borrowers.
No Upfront Mortgage Insurance Required: Unlike FHA loans, Conventional Loans do not charge upfront mortgage insurance premiums.
PMI Can Be Removed: Private Mortgage Insurance (PMI) can typically be removed once you reach 20% equity.
More Property Types Allowed: Conventional Loans can be used for primary homes, second homes, and investment properties.

Who Is a Good Fit for a Conventional Loan?

Borrowers who may benefit from a Conventional Loan include:

Homebuyers with solid credit (typically 620+)
Borrowers making a 3–20% down payment
Homeowners refinancing for better terms
Buyers looking for second homes or investment properties
Borrowers with stable, verifiable income

If you’re unsure whether a Conventional Loan is right for you, Jesse will review your full financial profile and help you determine the best mortgage strategy.

Conventional Loan Requirements

Requirements may vary slightly by lender, but common standards include:

Credit Score: Minimum credit score of 620, with better rates for higher scores.
Down Payment: Ranging from 3% to 20%, depending on the borrower profile.
DTI (Debt-to-Income) Ratio: Typically up to 45%, though exceptions may apply.
Property Standards: The home must meet conforming loan property guidelines.
Loan Limits: Set annually by the Federal Housing Finance Agency (FHFA); higher-cost areas may allow larger conforming limits.

Conventional Loan Options

Conventional Loans come in several formats to match your needs:

Conventional 97 (3% Down): Designed for first-time buyers and eligible borrowers.
Standard Conventional Loan (5%–20% Down): Balanced option offering long-term stability and strong approval terms.
High-Balance Conventional Loans: For borrowers in higher-cost markets requiring larger loan amounts.
Investment Property Conventional Loans: Ideal for rental properties or second homes.

Refinancing With a Conventional Loan

Homeowners often refinance into a Conventional Loan to reduce monthly payments, switch from FHA to Conventional, or remove mortgage insurance.

Refinance options include:

Rate-and-Term Refinance
Cash-Out Refinance
Debt-Consolidation Refinance
FHA-to-Conventional Refinance

Jesse evaluates your goals, current loan, and financial profile to help you choose the right refinancing path.

Why Borrowers Choose Jesse Schwager

Borrowers trust Jesse because of his:

20+ years of experience
Clear, transparent communication
Expertise in Conventional Loan guidelines
Fast pre-approvals
On-time closings
Client-first approach

Jesse makes the loan process simple, informative, and predictable, so you always know what to expect next.

Get Pre-Approved for a Conventional Loan

Your Path to Secure, Stress-Free Home Financing Starts Here

A strong pre-approval is the first step toward securing a home or refinancing with confidence.

Start your Conventional Loan pre-approval today and work with a trusted, top-rated mortgage loan professional.