No upfront mortgage insurance. Lower long-term costs. Flexible property types. Conventional loans through Fannie Mae and Freddie Mac are the gold standard for well-qualified buyers and refinancers — and we'll make sure you're getting the best terms available.
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Conventional Programs
Conventional isn't one-size-fits-all. Whether you're putting 3% down or 20%, buying a primary home or an investment property, we'll find the right conventional structure for your situation.
Homebuyers & Refinancers
The most widely used conventional program. Strong rates, flexible terms, and available for primary residences, second homes, and investment properties. Fannie Mae's guidelines work well for most W-2 borrowers with solid credit.
Homebuyers & Refinancers
Freddie Mac's guidelines are slightly different from Fannie Mae's — and for some borrowers, those differences matter. We run your scenario through both and use whichever gives you the better result.
First-Time & Low-to-Moderate Income Buyers
HomeReady is designed for first-time buyers and borrowers in lower-to-moderate income households. It allows down payments as low as 3% and accepts income from household members who aren't on the loan.
First-Time & Low-to-Moderate Income Buyers
Freddie Mac's answer to HomeReady. Similar structure — 3% down, reduced PMI, income flexibility — with slightly different eligibility rules that can work better for certain borrowers.
Conventional vs. FHA
The right choice depends on your credit score, down payment, and how long you plan to stay in the home. Here's the honest comparison.
| Feature | Conventional | FHA |
|---|---|---|
| Min. Down Payment | 3% (with HomeReady / HomePossible) | 3.5% (580+ credit score) |
| Min. Credit Score | 620 | 500 (with 10% down), 580 (with 3.5%) |
| Mortgage Insurance | PMI — removed once you reach 20% equity | MIP for life of loan in most cases |
| Upfront MIP | None | 1.75% of loan amount |
| Loan Limits | Conforming + high balance options | FHA loan limits by county |
| Property Types | Primary, second home, investment | Primary residence only |
| Best For | Good credit, lower long-term cost, flexibility | Lower credit scores, smaller down payment |
Not sure which is right for you? We'll run both scenarios side by side so you can see the real numbers before you decide.
The Process
From first call to closing keys — here's what the conventional loan process looks like with FlexPoint.
We review your income, credit, and goals. If conventional is your best option, we tell you exactly which program fits and why. No credit pull at this stage.
Once you're ready to move forward, we pull your credit and issue a pre-approval — typically within one business day. That pre-approval letter is what sellers and agents want to see.
With a pre-approval in hand, you shop with confidence. When you find the right property, we open the formal loan file immediately.
Pay stubs, W-2s, bank statements, and tax returns for the last two years. We'll give you an exact checklist so nothing falls through the cracks.
Underwriting, appraisal, clear to close — and you're at the closing table. We keep you informed at every step so there are no surprises.
We review your income, credit, and goals. If conventional is your best option, we tell you exactly which program fits and why. No credit pull at this stage.
Once you're ready to move forward, we pull your credit and issue a pre-approval — typically within one business day. That pre-approval letter is what sellers and agents want to see.
With a pre-approval in hand, you shop with confidence. When you find the right property, we open the formal loan file immediately.
Pay stubs, W-2s, bank statements, and tax returns for the last two years. We'll give you an exact checklist so nothing falls through the cracks.
Underwriting, appraisal, clear to close — and you're at the closing table. We keep you informed at every step so there are no surprises.
Who This Is For
Conventional isn't right for everyone — but for the right borrower, it's usually the lowest-cost path to homeownership over time.
Your Credit Score Is 620 or Higher
Conventional rewards good credit with better rates and lower long-term insurance costs than FHA.
You Have 20% to Put Down
Put 20% down and eliminate PMI entirely — the most cost-efficient path if you have the savings.
You're a First-Time Buyer With Moderate Income
You're Buying a Second Home or Investment Property
Conventional is one of the few programs that allows second homes and investment properties — FHA does not.
You Want to Refinance Out of an FHA Loan
Once you've built enough equity, refinancing to conventional removes permanent MIP and typically lowers your monthly payment.
You're a Non-Permanent Resident Alien
Both Fannie Mae and Freddie Mac allow Non-Permanent Resident Aliens with a valid work authorization and U.S. credit history.
The FlexPoint Difference
Nearly 30 years and over $5 billion funded. Here's what that means on your conventional loan.
Takes less than 60 seconds. No credit pull required.
By submitting this form, you consent to be contacted by FlexPoint Inc. regarding your inquiry. This is not a commitment to lend. All loans subject to credit approval. Restrictions apply. Some products may not be available in all states. FlexPoint Inc. NMLS #243082.
FAQ
The questions homebuyers and refinancers ask us most about conventional loans.