Conventional Loan
Conventional loans offer great rates and money-saving options for those who qualify.
Get the home you want, from a conventional mortgage lender you can trust.
When you're ready to find your dream home, a conventional loan offers the flexibility and competitive rates to get you into your new home fast. Lock into a fixed-rate mortgage over the life of the loan, and with a qualifying down payment you can avoid mortgage insurance premium fees.
An adjustable-rate mortgage (ARM) has an interest rate that is fixed for a set number of years and then will go up or down based on the market. If you’re thinking of getting an ARM, consider how long you plan to stay in your home. If you plan to stay in your home for a long time, a fixed-rate, conventional loan may be better for you. But, if you plan to sell your home before the rate becomes variable, consider an ARM because initial rates are typically lower.
Conventional Loan Document Requirements:
- Clear copy of your driver’s license, passport or state ID Card
- Pay stubs covering the most recent 30 day pay period
- Complete bank statements for the past two months, all pages
- All W2’s for the last two years
- The purchase agreement, all pages, and amendments (fully executed)
- Copy of cleared earnest deposit check, both front and back, or a copy of your bank statement showing that the check has cleared, when available
- Contact information of title company handling the settlement, if not in the contract
- Contact Information of homeowner’s insurance agent/company using, when available
- Complete all e-signatures on loan application documents online for all borrowers and submit
- Print, date, and sign, in ink, the required printed pages from the loan application documents online
- Amount of intended down payment
- Minimum loan amount of $175,000 required to apply*
Conventional Loan FAQs
What is a conventional loan?
One of the most common types of loans that home buyers come across is the conventional loan. These loans aren’t backed by the government, like FHA and VA loans. Conventional loans follow the guidelines that Fannie Mae and Freddie Mac - two agencies responsible for standardizing mortgage lending - have set. But it’s lenders, such as banks, that are responsible for approving your conventional loan. Here's a blog that explains more about conventional loans.
What is the minimum required loan amount?
A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.
What documentation do I need for a conventional loan?
Among the documentation you may need for a conventional loan are:
- Copy of driver’s license
- Two years full tax returns if self-employed - all pages and all schedules
- Two years W2's
- Two most recent pay stubs with year-to-date pay
- Two most recent asset statements - all pages with full transaction history
- Copy of your mortgage statement if you currently own
What types of homes can I purchase with a conventional loan?
You can purchase property types such as: single family homes, condos, and townhomes. These homes can be purchased as primary residences, second homes or investment properties.
Will I need mortgage insurance with a conventional loan?
Private mortgage insurance (PMI) is typically required on a conventional loan any Fannie Mae/Freddie Mac loan when there is less than a 20% down payment.
What credit score do I need to qualify for a conventional loan?
Credit score requirements for conventional loans vary from lender to lender, but a conventional loan may require on average a higher credit score than an FHA loan.
How much do I need for a conventional loan down payment?
The minimum down payment amount for a conventional loan is 3% for a fixed-rate mortgage, and 10% for adjustable rate mortgages. It is best to have as much saved up as possible for a conventional loan down payment as a down payment of 20% or more can eliminate the need to pay monthly private mortgage insurance ('PMI').
How much can I borrow with a conventional loan?
Conventional loan limits are set by Fannie Mae and Freddie Mac and can vary by different areas in the U.S. To see what the loan limit is in your area, click here.
What are the benefits of a conventional loan?
Conventional loans may offer some of advantages to other loan types. They require down payments as low as 3%, there may be less paperwork, and you will not have monthly primary mortgage insurance ('PMI') with a down payment of at least 20%.
Mortgage Calculators
- A variety of mortgage payment calculations
- Learn which loan is better for you
- Help to make term and loan type decisions
Preparing to Buy a Home
- Home buying prep FAQs
- Helpful featured articles
- Calculators to help you budget
What Our Customers Say
Tallaresha C., October 21, 2022
★★★★★ (5)
"Because I noticed that you guys were on top of your game, I decided to go with NASB rather than some of the other lenders with whom I actually have banking relationships and who also provide me with lower interest rates. You guys didn't waste any time and had excellent communication. The fact that I was given the "clear to close" earlier than my original closing date was quite impressive to me, too. I look forward to doing business with NASB again very soon!"
"Because I noticed that you guys were on top of your game, I decided to go with NASB rather than some of the other lenders with whom I actually have banking relationships and who also provide me with lower interest rates. You guys didn't waste any time and had excellent communication. The fact that I was given the "clear to close" earlier than my original closing date was quite impressive to me, too. I look forward to doing business with NASB again very soon!"
