The conventional loan is what the industry defaults to when someone has solid credit, steady income, and a down payment. It's not glamorous — it's just the best-priced everyday mortgage for the buyer who fits the box. 3% down for first-time buyers. 5% down for most everyone else. PMI that drops off the moment you cross 20% equity. Fixed and adjustable terms, primary, second home, and investment — all under the same roof.
If your file is clean, this is almost always the sharpest number in the room. Rate, PMI structure, and long-term cost all beat the government alternatives when you qualify.
3% for first-time buyers on HomeReady / Home Possible. 5% for most everyone else. Gift funds allowed.
Monthly mortgage insurance drops the moment you cross 20% equity. Unlike FHA, it isn't a life-of-loan expense.
Primary, second home, and investment property — all conventional. Same program, different guardrails.
2025 baseline in most NY counties. High-cost counties (NYC, Long Island, Westchester) go to $1,209,750.
Conventional is the default because it's the right answer more often than any other loan. The question is usually "conventional or something else" — and the "something else" only wins when the file has a reason to leave.
Selling a starter home, rolling equity into the next place. Fastest, cheapest way to do it on a clean file.
HomeReady / Home Possible programs give you 3% down and reduced PMI. Beats FHA on most 700+ FICO files.
Lake house, ski place, or beach place — 10% down conventional is often the only way in. FHA and VA don't do second homes.
1-4 unit rentals in your personal name. Conventional handles up to 10 financed properties.
Bought FHA, built equity, want out from under life-of-loan MIP. Conventional refi is the exit.
Home improvement, debt consolidation, business capital. Up to 80% LTV on a cash-out refi.
Underwritten to Fannie Mae or Freddie Mac guidelines — the two agencies that buy most of the mortgages in America. That's what makes the rate work: there's a giant, liquid secondary market waiting to buy the loan the day after it closes.
Credit, income, assets. Two years of W-2s or tax returns. Standard file, standard timeline.
3% / 5% / 10% / 20% down — I show you the payment at each option so you pick with real numbers, not guesses.
Standard appraisal, no VA-style property condition rules. Cleaner underwriting than government loans on most files.
21-30 days on a clean file. PMI (if any) starts at closing and cancels automatically once you cross 22% equity.
Every scenario is different — these are the typical guardrails. When you call, I'll tell you exactly where you sit on each line.
| Guideline | Purchase | Refinance |
|---|---|---|
| Down payment | 3% first-time (HomeReady/Home Possible) · 5% standard · 10% 2nd home · 15-25% investment | N/A — up to 97% LTV rate/term (primary) · up to 80% cash-out |
| Minimum FICO | 620 (some programs 640) · best pricing 740+ | 620 |
| Mortgage insurance | Required under 20% down · cancels automatically at 78% LTV, request at 80% | Same |
| DTI | Up to 50% with automated approval & compensating factors | Same |
| Loan limits | $806,500 baseline · $1,209,750 in high-cost NY counties (NYC, Nassau, Suffolk, Westchester, Rockland) | Same |
| Gift funds | 100% of down payment allowed on primary residence | N/A |
| Waiting periods | 4 yrs post-Ch. 7 · 2 yrs post-Ch. 13 discharge · 7 yrs post-foreclosure | Same |
| Occupancy | Primary, second home, investment — all eligible | All eligible |
| Property types | 1-4 family · warrantable condo · PUD · manufactured (limited) | Same |
| Terms | 10 · 15 · 20 · 25 · 30-yr fixed · 5/6, 7/6, 10/6 ARM | Same |
Two triggers. Automatic cancellation happens when your loan balance falls to 78% of the original property value — you don't have to ask. Borrower-requested cancellation is available at 80% LTV based on original value, and can be pulled earlier at 80% of current value if the home has appreciated (this one requires a new appraisal). Either way — unlike FHA MIP on a 3.5%-down loan — conventional PMI does not stay for life. It's temporary.
No — this is one of the biggest myths in the industry. First-time buyers can go conventional at 3% down through HomeReady (Fannie Mae) or Home Possible (Freddie Mac). Most other buyers put 5% down. The 20% number matters only because that's the point where PMI isn't required — not because it's the minimum.
Same underlying loan, structured with a couple of buyer-friendly tweaks: 3% minimum down, reduced PMI, expanded flexibility on income sources (boarder income, non-occupant co-borrowers), and modest homebuyer-education requirements. Income limits apply in most areas. Great fit for first-time buyers with strong credit but limited savings.
Short version: FICO 700+ with 5% down usually goes conventional (lower payment, PMI drops off). FICO under 680 or credit still healing usually goes FHA (looser guidelines, higher DTI ceiling). Between 680 and 720 the two programs run close; I structure both and show you the payment side-by-side so you pick with real numbers. See the FHA page for that side of the coin.
Yes — up to 10 financed properties per borrower under Fannie Mae guidelines. Down payments run 15% on a 1-unit investment, 25% on 2-4 unit investment. Rates price higher than a primary but lower than any non-QM investor product on the market. For pure rental-income qualifying without personal income, look at DSCR loans instead.
2025 baseline is $806,500 in most NY counties. The high-cost counties — NYC (all five boroughs), Nassau, Suffolk, Westchester, and Rockland — go up to $1,209,750. Loans above the limit are jumbo, which is its own program with its own guidelines.
Licensed across New York State — with deep roots in the Capital Region and select NYC neighborhoods.
Don't see your town? Reach out — I lend statewide. Or see every Capital Region town.