Conventional Loans: Complete Guide to Fannie Mae & Freddie Mac Mortgages
Conventional loans are the most common type of mortgage in the United States, offered through Fannie Mae and Freddie Mac guidelines. These loans provide competitive rates, flexible terms, and options for both first-time homebuyers and experienced homeowners in the Dallas-Fort Worth area. This comprehensive guide answers all your questions about conventional mortgages, from down payment requirements to qualification guidelines.
General Conventional Loan Questions
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by the federal government. Instead, these loans follow guidelines set by Fannie Mae and Freddie Mac, government-sponsored enterprises that purchase mortgages from lenders. Conventional loans offer competitive interest rates and flexible terms for qualified borrowers.
What's the difference between Fannie Mae and Freddie Mac loans?
Both Fannie Mae and Freddie Mac are government-sponsored enterprises that set guidelines for conventional mortgages. For borrowers, there's virtually no difference—both offer similar loan terms, rates, and requirements. Your lender determines which entity will purchase your loan, but you'll experience the same benefits regardless.
Who qualifies for a conventional loan?
Most borrowers with stable income, good credit (typically 620 or higher), manageable debt-to-income ratios, and sufficient assets for down payment and reserves can qualify for conventional loans. These loans are available for US citizens, permanent residents, and certain non-permanent residents with work authorization.
What are the benefits of a conventional loan?
Conventional loans offer several advantages including competitive interest rates, flexible down payment options (as low as 3%), the ability to cancel PMI once you reach 20% equity, higher loan limits than FHA loans, fewer restrictions on property types and conditions, and options for second homes and investment properties.
What types of properties can I buy with a conventional loan?
Conventional loans can be used to purchase single-family homes, condominiums, townhomes, multi-family properties (2-4 units), planned unit developments (PUDs), manufactured homes, and co-ops. They're available for primary residences, second homes, and investment properties.
Down Payment and LTV Questions
How much down payment do I need for a conventional loan?
The minimum down payment for a conventional loan is 3% for first-time homebuyers through programs like HomeReady and Home Possible. For most other borrowers, the minimum is 5% down. However, putting down 20% or more eliminates the need for private mortgage insurance (PMI).
Can I put down less than 20% on a conventional loan?
Yes, conventional loans allow down payments as low as 3-5% depending on the program and your borrower profile. However, any down payment less than 20% will require private mortgage insurance (PMI) until you reach 20% equity in your home.
What is the maximum loan-to-value (LTV) ratio?
For primary residences, the maximum LTV is 97% (3% down) for eligible first-time buyers, and 95% (5% down) for most other borrowers. For second homes, the maximum LTV is typically 90% (10% down), and for investment properties, it's 85% (15% down) for single-unit properties.
What are the LTV requirements for multi-unit properties?
For 2-unit properties, the maximum LTV is 85% (15% down). For 3-4 unit properties, the maximum LTV is 75% (25% down) for primary residences. Investment property multi-units typically require 25% down regardless of the number of units.
Can I use gift funds for my down payment?
Yes, gift funds from family members are allowed for conventional loans. For loans with less than 20% down, the borrower must contribute at least 5% from their own funds if the LTV is greater than 80%. Gifts from non-family members may be allowed in certain circumstances with proper documentation.
What is the maximum loan amount for conventional loans?
For 2025, the conforming loan limit is $806,500 for single-family homes in most areas. High-cost areas like parts of California and New York have higher limits. Dallas-Fort Worth generally follows the standard conforming limit. Loans above these limits are considered jumbo loans with different requirements.
PMI (Private Mortgage Insurance) Questions
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is insurance that protects the lender if you default on your loan. PMI is required on conventional loans when your down payment is less than 20% of the home's purchase price or appraised value, whichever is less.
How much does PMI cost?
PMI typically costs between 0.3% to 1.5% of the original loan amount annually, depending on your credit score, loan-to-value ratio, and loan type. For example, on a $300,000 loan, PMI could range from $75 to $375 per month. Higher credit scores and lower LTV ratios result in lower PMI costs.
Can I cancel PMI on a conventional loan?
Yes, one of the major advantages of conventional loans is that PMI can be cancelled. Once your loan balance reaches 80% of the original home value through regular payments, you can request PMI cancellation. PMI automatically terminates when your balance reaches 78% of the original value. If your home has appreciated, you may be able to cancel PMI sooner with a new appraisal.
How do I remove PMI from my conventional loan?
To remove PMI, you typically need to reach 20% equity through regular mortgage payments, make additional principal payments, or demonstrate home value appreciation through a new appraisal. Contact your lender to request PMI cancellation once you believe you've reached 20% equity. You'll need to be current on payments with a good payment history.
What's the difference between borrower-paid and lender-paid PMI?
Borrower-paid PMI (BPMI) is added to your monthly mortgage payment and can be cancelled once you reach 20% equity. Lender-paid PMI (LPMI) is built into your interest rate—you pay a slightly higher rate instead of a separate PMI premium. LPMI cannot be cancelled but may result in tax benefits since mortgage interest is potentially tax-deductible.
Credit Score and Credit History Questions
What credit score do I need for a conventional loan?
The minimum credit score for most conventional loans is 620. However, the best interest rates and terms are typically available to borrowers with credit scores of 740 or higher. Borrowers with scores between 620-679 will face higher interest rates and PMI costs.
Can I get a conventional loan with a 620 credit score?
Yes, 620 is the minimum credit score for conventional loans, but you'll face higher interest rates and PMI premiums. You may also be limited to lower LTV ratios and will need strong compensating factors like low debt-to-income ratio, significant reserves, or larger down payment.
How does my credit score affect my interest rate?
Credit scores significantly impact your interest rate on conventional loans. The difference between a 620 score and a 760+ score can be 1.5-2% or more in interest rate. On a $400,000 loan, this could mean a difference of $400-600 per month or $150,000+ over the life of the loan.
How many credit tradelines do I need?
Conventional loans typically require at least three tradelines (credit accounts) with a history of on-time payments. If you don't have three traditional tradelines, alternative credit references like rent, utilities, or insurance payments may be acceptable with proper documentation.
How long after bankruptcy can I get a conventional loan?
For Chapter 7 bankruptcy, you must wait 4 years from the discharge date. For Chapter 13 bankruptcy, you may qualify after 2 years from the discharge date (or 4 years from the dismissal date) with re-established good credit. Extenuating circumstances may reduce these waiting periods to 2 years for Chapter 7.
How long after foreclosure can I qualify?
You must wait 7 years after a foreclosure to qualify for a conventional loan under standard guidelines. If the foreclosure was due to extenuating circumstances beyond your control, the waiting period may be reduced to 3 years with documentation and re-established credit.
What about short sales or deed-in-lieu?
Short sales and deeds-in-lieu of foreclosure require a 4-year waiting period from the completion date. If there were extenuating circumstances, this may be reduced to 2 years with proper documentation, re-established credit, and strong compensating factors.
Can I have late payments on my credit report?
Recent late payments, especially on mortgage or rent payments, can significantly impact your ability to qualify. Ideally, you should have no late payments in the past 12 months. Late payments older than 12 months have less impact, but a pattern of late payments will affect your interest rate and approval odds.
Income and Employment Questions
How much income do I need to qualify?
There's no specific income requirement, but your income must be sufficient to maintain a debt-to-income (DTI) ratio at or below 45-50%. Your total monthly debt payments, including your new mortgage, should not exceed 45-50% of your gross monthly income in most cases.
What is debt-to-income ratio (DTI)?
DTI is the percentage of your gross monthly income that goes toward paying debts. It's calculated by dividing your total monthly debt payments by your gross monthly income. Conventional loans typically allow a maximum DTI of 45-50%, though lower ratios result in better rates and easier approval.
How long do I need to be employed?
Lenders typically want to see a minimum 2-year employment history, preferably with the same employer or in the same line of work. Recent job changes are acceptable if they represent career advancement in the same field. Gaps in employment may require explanation and documentation.
Can I qualify if I just started a new job?
Yes, but you'll typically need to have started the job and received at least one paystub. If you changed jobs within the same industry or career field, this is generally acceptable. If you changed careers, you may need to show additional employment stability or have already completed a probationary period.
Can self-employed borrowers get conventional loans?
Yes, self-employed borrowers can qualify with 2 years of tax returns showing consistent or increasing income. Lenders will average your income from the past 2 years, making adjustments for non-recurring income or expenses. You'll need to provide both personal and business tax returns, including all schedules.
How is self-employment income calculated?
Self-employment income is calculated by taking your net profit from Schedule C (or business returns for corporations/partnerships) and adding back non-cash expenses like depreciation. The income is then averaged over 24 months. If income is declining, only the most recent year may be used, or you may not qualify.
Can I use bonus or commission income?
Yes, bonus, commission, and overtime income can be used if you have a 2-year history of receiving it and your employer confirms it's likely to continue. The income is typically averaged over 24 months. If the income is trending down, only the most recent year may be considered or it may be excluded.
Can I use rental income to qualify?
Yes, rental income from investment properties or multi-unit primary residences can be used. Lenders typically use 75% of the gross rental income (to account for vacancy and maintenance) minus PITIA. You'll need a lease agreement or rental history, and may need to show the rental income on your tax returns.
What about retirement income or Social Security?
Retirement income, Social Security, pension income, and disability income can all be used to qualify. You'll need to provide documentation showing the income is stable and will continue for at least 3 years. Award letters, tax returns, and bank statements showing deposits are typically required.
Asset and Reserve Requirements
How much money do I need in reserves?
Reserve requirements vary by loan type and property. For a primary residence single-family home, you may need 0-6 months of reserves depending on your down payment, credit score, and loan amount. Investment properties typically require 6 months of reserves, and reserves increase for multi-unit properties and higher loan amounts.
What counts as reserves?
Reserves include checking and savings accounts, money market accounts, stocks, bonds, mutual funds, 401(k) and IRA accounts (with applicable penalties considered), and proceeds from the sale of real estate. Life insurance cash value can also count. Retirement accounts for borrowers under 59½ are typically counted at 60-70% of value.
Can I use gift funds for reserves?
Gift funds that remain after closing can count toward reserves. You'll need to document the gift with a gift letter and show the funds have been transferred to your account and are available after closing costs and down payment.
How recent do my bank statements need to be?
Bank statements must be dated within 60 days of the application date and should show 2 months of account history. All pages must be included, and any large deposits (typically over 50% of your gross monthly income) must be sourced and documented.
What if I have large deposits in my account?
Any large deposit (typically defined as more than 50% of your gross monthly income) must be sourced and documented. Acceptable sources include transfers from your own accounts, gift funds with a gift letter, proceeds from the sale of assets, tax refunds, or bonuses. Undocumented deposits may not be counted toward your available funds.
Property Type and Occupancy Questions
Can I use a conventional loan for an investment property?
Yes, conventional loans are available for investment properties with a minimum 15% down payment for single-family homes (25% for multi-unit properties). Investment properties have higher interest rates, stricter credit requirements (usually 680+ credit score), and require more reserves than primary residences.
What about second homes?
Conventional loans are available for second homes with as little as 10% down. The property must be occupied by the borrower for some portion of the year, located a reasonable distance from the primary residence, and cannot be a rental property. Interest rates are slightly higher than primary residences but lower than investment properties.
Can I buy a multi-family property to live in?
Yes, you can purchase a 2-4 unit property as your primary residence with as little as 5% down (15% for 2-unit, 25% for 3-4 unit). You must occupy one of the units as your primary residence. Rental income from the other units can be used to help you qualify (typically 75% of market rent minus PITIA).
Are condominiums eligible?
Yes, but the condominium project must be approved by Fannie Mae or Freddie Mac (warrantable condo). The project must meet specific requirements regarding owner-occupancy ratios, insurance, HOA financial health, and commercial space limitations. Non-warrantable condos require different financing.
What about manufactured homes?
Manufactured homes are eligible for conventional financing if they meet specific requirements: built after June 15, 1976, permanently affixed to a foundation, titled as real property (not personal property), located on land owned by the borrower, and meeting HUD building codes. These loans typically require higher down payments.
Can I buy a fixer-upper with a conventional loan?
Standard conventional loans require the property to be in livable condition. For properties needing repairs, you can use a Fannie Mae HomeStyle Renovation loan or Freddie Mac CHOICERenovation loan, which allow you to finance both the purchase and renovation costs in a single mortgage.
Loan Terms and Products
What loan terms are available?
Conventional loans are available in 30-year, 25-year, 20-year, 15-year, and 10-year fixed-rate terms. Adjustable-rate mortgages (ARMs) are also available with initial fixed periods of 3, 5, 7, or 10 years before adjusting annually. 30-year fixed-rate loans are the most popular option.
Should I get a 30-year or 15-year mortgage?
A 30-year mortgage offers lower monthly payments and more flexibility, making it easier to qualify and manage cash flow. A 15-year mortgage has a lower interest rate and builds equity much faster, but requires higher monthly payments. Choose based on your financial goals, income stability, and other financial priorities.
What is an ARM loan?
An Adjustable Rate Mortgage (ARM) has an interest rate that remains fixed for an initial period (typically 3, 5, 7, or 10 years), then adjusts annually based on market indices. ARMs typically offer lower initial rates than fixed-rate loans. They're best for borrowers who plan to move or refinance before the rate adjusts.
Are there prepayment penalties?
No, conventional loans do not have prepayment penalties. You can pay extra toward principal, make additional payments, or pay off the loan early without any fees or penalties.
Can I get a conventional loan with an interest-only period?
Interest-only conventional loans are rare and typically only available for jumbo loans to highly qualified borrowers. Standard Fannie Mae and Freddie Mac conforming loans require fully amortizing payments (both principal and interest) from the start.
Refinance Questions
Can I refinance my current mortgage with a conventional loan?
Yes, you can refinance FHA, VA, USDA, or existing conventional loans into a new conventional loan. This is often called a rate-and-term refinance if you're lowering your rate or changing your term, or a cash-out refinance if you're taking equity out of your home.
What is a rate-and-term refinance?
A rate-and-term refinance replaces your existing mortgage with a new loan, typically to secure a lower interest rate, change your loan term, or switch from an ARM to a fixed-rate loan. You can receive up to $2,000 cash back at closing. The new loan amount is limited to paying off your existing mortgage, closing costs, and prepaid items.
What is a cash-out refinance?
A cash-out refinance allows you to borrow more than you owe on your current mortgage and receive the difference in cash. You can take cash out for any purpose—home improvements, debt consolidation, investments, etc. Maximum LTV for cash-out refinances is typically 80% for primary residences, 75% for second homes, and 75% for investment properties.
How much equity do I need to refinance?
For a rate-and-term refinance, you can refinance with as little as 3% equity (97% LTV), though you'll pay PMI if your LTV exceeds 80%. For cash-out refinances, you must maintain at least 20% equity (80% maximum LTV) for primary residences. Investment properties and second homes have stricter requirements.
How long do I need to wait after purchase to refinance?
For a rate-and-term refinance, there's typically no waiting period—you can refinance as soon as it makes financial sense. For cash-out refinances, you generally must wait at least 6 months from your purchase date, and the LTV will be based on the lower of the appraised value or original purchase price plus improvements.
Can I roll closing costs into my refinance?
Yes, closing costs can be included in your new loan amount as long as you don't exceed maximum LTV limits. This is common for rate-and-term refinances. Alternatively, you can choose a "no-closing-cost refinance" where the lender covers costs in exchange for a slightly higher interest rate.
Special Programs and First-Time Buyers
What is the HomeReady program?
HomeReady is a Fannie Mae program designed for low-to-moderate income borrowers. It offers 3% down payment options, flexible income sources (including boarder income), reduced PMI costs, and homebuyer education requirements. Borrowers must meet income limits based on their area median income (typically 100% of AMI or less).
What is the Home Possible program?
Home Possible is Freddie Mac's equivalent to HomeReady. It offers 3% down payment options for first-time homebuyers and those in low-income areas, flexible credit requirements, reduced PMI, and accepts non-traditional credit. Income limits apply based on area median income.
Do I qualify as a first-time homebuyer?
For most programs, you're considered a first-time homebuyer if you haven't owned a home in the past 3 years. Single parents who only owned with a former spouse may also qualify, as well as displaced homemakers. Some programs have more lenient definitions.
What is a conforming loan?
A conforming loan is a conventional mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, including loan amount limits. For 2025, the conforming loan limit is $806,500 for most areas. Loans that exceed this amount are called jumbo loans and have different requirements.
What are the benefits of HomeReady and Home Possible?
These programs offer lower down payment requirements (3%), reduced PMI costs compared to standard conventional loans, acceptance of non-traditional income sources, consideration of household income (not just borrower income), and homeownership education that can improve your success as a homeowner.
Closing and Documentation Questions
How long does it take to close on a conventional loan?
Conventional loans typically close in 30-45 days from the time of application, though this can vary based on property type, appraisal scheduling, and documentation requirements. Purchase transactions are often faster than refinances. Working with experienced lenders and being responsive with documentation can speed up the process.
What documents do I need to apply?
You'll need recent pay stubs (30 days), W-2s for the past 2 years, 2 months of bank statements for all accounts, tax returns for the past 2 years (especially if self-employed or using bonus/commission income), photo ID, proof of any other income sources, and information about the property you're purchasing.
Do I need an appraisal?
Yes, all conventional loans require an appraisal to determine the property's market value. The appraisal must be completed by a licensed appraiser and meets Fannie Mae/Freddie Mac standards. In some cases, automated valuation models or appraisal waivers may be offered for low-LTV refinances with strong borrower profiles.
What is an appraisal waiver?
An appraisal waiver (also called a Property Inspection Waiver or PIW) is an automated approval that eliminates the need for a full appraisal. It's only available on certain refinances and some purchase transactions where the automated underwriting system has high confidence in the property value. Not all loans qualify.
What are closing costs on a conventional loan?
Closing costs typically range from 2-5% of the loan amount and include lender fees (origination, processing, underwriting), third-party fees (appraisal, title insurance, title search, recording fees), prepaid items (property taxes, homeowners insurance, prepaid interest), and escrow reserves. Costs vary by location and lender.
Can the seller pay my closing costs?
Yes, seller concessions are allowed up to certain limits: 3% of the purchase price for loans with less than 10% down, 6% for loans with 10-25% down, and 9% for loans with more than 25% down. Investment properties are limited to 2% regardless of down payment amount.
Conventional Loans Compared to Other Loan Types
How is a conventional mortgage different than other loan types?
Conventional loans are not backed by the government, unlike FHA, VA, and USDA loans. This means they follow guidelines set by Fannie Mae and Freddie Mac rather than government agencies. Conventional loans typically require higher credit scores and larger down payments than government-backed loans, but offer more flexibility in property types, the ability to cancel PMI, and fewer restrictions overall.
What's the difference between conventional and FHA loans?
Conventional loans have stricter credit requirements than FHA loans. FHA loans offer approval with credit scores as low as 500 with 10% down, or 580 with 3.5% down. Conventional loans require at least a 620 credit score with 3% down. The key difference is mortgage insurance: if you put less than 10% down on an FHA loan, you'll pay mortgage insurance for the life of the loan regardless of equity. With conventional loans, you can cancel PMI once you reach 20% equity, potentially saving thousands over the life of the loan.
Should I get a conventional or FHA loan?
Choose conventional if you have good credit (680+), can put down at least 5-10%, and want the ability to cancel mortgage insurance. Choose FHA if you have lower credit scores (580-679), limited down payment funds (3.5%), or need more flexible debt-to-income ratios. While FHA allows lower credit scores and down payments, conventional loans often cost less over time due to cancellable PMI and lower mortgage insurance rates for borrowers with good credit.
What's the difference between conventional and VA loans?
VA loans are only available to veterans, active-duty service members, and their surviving spouses, while conventional loans are available to anyone who meets the requirements. VA loans offer exceptional benefits: no down payment required and no mortgage insurance ever. However, VA loans do require a funding fee (1.25% to 3.3% of the loan amount, varying by down payment and usage), though certain groups like Purple Heart recipients and those receiving VA disability are exempt. You also cannot use a VA loan to buy a second home—VA requires that you occupy the property as your primary residence.
Should I use my VA loan benefit or get a conventional loan?
If you're eligible for a VA loan, it's often the better choice due to zero down payment and no mortgage insurance requirements. However, consider these factors: VA loans charge a funding fee (which can be financed into the loan), are limited to primary residences only, and may have slightly higher interest rates than conventional loans in some cases. If you're buying a second home or investment property, or if you want to preserve your VA benefit for a future purchase, a conventional loan may be the better option.
What's the difference between conventional and USDA loans?
USDA loans are only available for properties in qualifying rural areas, while conventional loans can be used anywhere in the country. USDA loans have income limits that vary by location and consider household income (not just borrower income), while conventional loans have no maximum income restrictions. USDA loans don't require PMI but do charge a guarantee fee (1% upfront or built into monthly payments), which is typically more affordable than conventional PMI. USDA loans can offer 100% financing (no down payment) for eligible borrowers in qualifying areas.
Are VA loans better than conventional loans for military doctors?
VA loans offer 0% down with no PMI for eligible veterans. If you qualify for VA benefits, compare both options. Physician loans may offer higher loan amounts and fewer property restrictions.
Can I have both a VA loan and a conventional loan?
Yes, you can have both types of loans simultaneously. For example, you might use your VA loan benefit for your primary residence and a conventional loan for an investment property or second home. Your VA entitlement amount determines how much you can borrow with a VA loan while having other mortgages.
Texas-Specific Questions
Are there special rules for conventional loans in Texas?
Texas has specific regulations for cash-out refinances under Section 50(a)(6) of the Texas Constitution. These "Texas cash-out loans" have additional restrictions including a maximum 80% LTV, 12-day waiting period after application before closing, no closing within the first year of ownership, and prohibition on using for investment properties.
What is a Texas 50(a)(6) loan?
A Texas 50(a)(6) loan is a cash-out refinance that extracts equity from your homestead property. Texas law requires these loans to be capped at 80% LTV, limits fees to 3% of the loan amount, and imposes a 12-day waiting period. Not all lenders offer these loans due to the additional complexity and restrictions.
Can I do a cash-out refinance in Texas?
Yes, but cash-out refinances on homestead properties in Texas must follow strict 50(a)(6) rules including 80% maximum LTV, 3% fee cap, 12-day waiting period, and one cash-out per 12-month period. Rate-and-term refinances and cash-out refinances on non-homestead properties have fewer restrictions.
Rate and Payment Questions
How are conventional loan interest rates determined?
Interest rates are based on multiple factors including your credit score (higher scores get better rates), loan-to-value ratio (more down payment = better rates), debt-to-income ratio, loan amount, property type, occupancy (primary residence vs investment), loan term, and current market conditions. Rate pricing can vary significantly between these factors.
Can I buy down my interest rate?
Yes, you can pay discount points (1 point = 1% of loan amount) to reduce your interest rate. Each point typically lowers your rate by approximately 0.25%. This makes sense if you plan to keep the loan long enough to recoup the upfront cost through lower monthly payments.
What is the difference between interest rate and APR?
The interest rate is what you pay on the loan principal. APR (Annual Percentage Rate) includes the interest rate plus other loan costs like origination fees, discount points, and mortgage insurance, expressed as a yearly rate. APR gives you a more complete picture of the loan's true cost and helps you compare offers.
Should I lock my interest rate?
Yes, once you're satisfied with your rate, you should lock it to protect against rate increases while your loan is being processed. Rate locks typically last 30-60 days. If you lock and rates drop significantly, some lenders offer a "float down" option to capture the lower rate for a fee.
How much will my monthly payment be?
Your monthly payment includes Principal, Interest, Taxes, Insurance, and HOA fees (PITIA). Use online mortgage calculators to estimate, but your actual payment will depend on your loan amount, interest rate, property taxes, homeowners insurance cost, HOA fees, and PMI if applicable. Lenders provide detailed payment estimates during the application process.
Special Situations
Can non-US citizens get conventional loans?
Permanent resident aliens with green cards can qualify with the same terms as US citizens. Non-permanent resident aliens with valid work visas can also qualify, though some lenders may require larger down payments or have additional restrictions. DACA recipients and ITIN holders face more limited options for conventional financing.
Can I buy a home with a co-borrower?
Yes, you can have multiple co-borrowers on a conventional loan. All borrowers' income, assets, and credit are considered. All borrowers must be on the title and the loan. Co-borrowers can be family members, partners, or friends, and having a co-borrower with strong credit and income can help you qualify for better terms.
What is a non-occupant co-borrower?
A non-occupant co-borrower is someone who is on the loan and obligated to repay it but doesn't live in the property. This is typically a parent helping a child qualify. The occupying borrower must make at least 5% down payment from their own funds, and occupancy and reserve requirements are stricter.
Can I buy a home in an LLC?
Conventional residential mortgages require individual borrowers, not LLCs. If you want the property titled in an LLC, you'll typically need to obtain the loan in your personal name first, then transfer it to the LLC afterward (with lender approval, as some loans have due-on-sale clauses). Commercial loans are different and can close directly in LLC names.
What if I have a foreign address or work overseas?
US citizens and permanent residents working overseas can still qualify for conventional loans. You'll need to provide documentation of your foreign income (converted to USD), proof of employment, tax returns, and demonstrate your intent to occupy the property as your primary residence when you return, if applicable.
Can I buy a property if I already own homes?
Yes, you can own multiple properties financed with conventional loans. However, Fannie Mae and Freddie Mac have limits on the number of financed properties (typically 4-10 depending on the lender). Additional properties require higher credit scores, larger down payments, more reserves, and stricter qualification criteria.