ILLINOIS · MIDWEST · SUNSHINE STATES: FLORIDA, TEXAS, ARIZONA & CALIFORNIA
Conventional loans
Flexible financing for a range of homeownership goals.
A conventional mortgage is not insured or guaranteed by a federal housing agency. Conforming conventional loans follow applicable Fannie Mae or Freddie Mac standards and loan limits; other conventional financing can fall outside those limits.
Discuss conventional loansWhat is a conventional mortgage?
A conventional mortgage is home financing that is not insured or guaranteed by FHA, VA, or USDA. Faulkner Financial Group compares available conventional programs through Barrett Financial Group LLC, NMLS #181106. Eligibility depends on income documentation, credit, debts, property, and down payment or equity; mortgage insurance, costs, and lender requirements may apply.
On this page
Who may find this useful
- Buyers and homeowners comparing purchase or refinance options.
- Eligible borrowers financing a primary home, second home, or investment property.
What lenders typically review
- Credit profile, documented income, debts, assets, and property eligibility.
- Down payment or equity, occupancy type, and the applicable loan limit.
- Private mortgage insurance when required, along with options for its cancellation.
PAYMENT STRATEGIES
Explore a temporary buydown.
A temporary buydown uses funded subsidies to reduce your initial out-of-pocket principal and interest payments. It does not change the mortgage’s note rate. With a typical 2-1 structure, payments are calculated at two percentage points below the note rate in year one, one point below in year two, and the full note rate from year three onward.
Seller contributions may help fund an eligible buydown, subject to program limits and lender approval. Ask whether any lender-funded options are currently available. Plan for the full payment after the subsidy ends; a future refinance or lower market rate is not guaranteed.
Ask about current buydown optionsCompare owning with renting.
Buying can build equity through principal repayment and possible appreciation, but home values can fall. Compare more than rent against a mortgage payment: include taxes, insurance, mortgage insurance, association dues, maintenance, upfront costs, and eventual selling costs. Your expected time in the home matters.
Ask our team for an illustration using your price range and current estimates. A fixed-rate mortgage keeps principal and interest stable; taxes, insurance, and other housing expenses can change.
Common questions
Do I need a large down payment?
Some conventional programs offer lower down payment options for eligible borrowers. Requirements vary by transaction, property, and program.
How is conventional different from FHA?
Conventional loans are not government-insured. Underwriting and mortgage insurance work differently, so compare both options using your actual profile.
Let’s review your next step.
Talk with our team about eligibility, documentation, estimated costs, and lender options for your property.
Contact Faulkner Financial GroupConnect with Jindra Faulkner, NMLS #225020: (847) 401-8237 · jindra@barrettfinancial.com
Educational information only. This is not a rate quote, approval, or commitment to lend. Programs, terms, and eligibility vary by lender, state, property, and borrower. All loans are subject to underwriting.
Learn more: CFPB conventional loan guide. External program information does not guarantee availability through our team.
Explore Chicago-area, Illinois, Wisconsin, Arizona, California, Florida, and Texas home financing · Services subject to applicable licensing.
Content updated · Published by Faulkner Financial Group LLC. Contact Jindra Faulkner, NMLS #225020, with content questions.
Buying after a credit event?
Review waiting periods after bankruptcy, foreclosure, short sale, or deed-in-lieu, plus the dates and documents to prepare.
Explore the credit waiting-period guide