What Are the Advantages of Conventional Financing?


There are several benefits of conventional financing, including:

  • You can buy a primary residence, second home, or rental property with most conventional loans
  • You have the choice of fixed rates, adjustable rates (ARMs), and loan-term options from 10-30 years
  • Down payments are as low as 3%
  • You pay no monthly mortgage insurance with a down payment of 20% or more
  • Mortgage insurance costs less than with government loans and may be cancelled when your home equity reaches 20%


Are Conventional Loans Realistic for First-Time Homebuyers?


If you’re a first-time homebuyer and are struggling to save up for a large down payment on a home, the Conventional 97% program may be what you need. It can be a great alternative, and is often more affordable than FHA loans. With a Conventional 97% Program, you can:

  • Finance up to 97% of the home’s value, with down payments as low as 3%
  • Use gift funds for your down payment
  • Get lower mortgage insurance rates if you attend home counseling and meet specific income limits

Learn More about the Loan Application Process

A Waterstone Mortgage home loan professional will answer any question you may have and walk you through the loan application process.

Get Pre-Approved!