Conventional Loans

Fannie-Mae (FNMA), Freddie-Mac (FHLMC)


We will help you get into your dream home because we offer a full array of mortgage products to fit your needs. This section is here to help you understand Conventional mortgage products. When you hear the term “conventional”, most likely you’re hearing about Fannie-Mae (FNMA) and Freddie Mac (FHLMC). A conventional loan is available with as little as a 3% down payment. We have been helping many individuals and families purchase homes with the amazing HomeReady and HomePossible program. Thru the approval process, we will give you the options available on these two popular programs. The most popular conventional loan is a fixed rate Fannie-Mae (FNMA) loan. Any conventional loan with less than 20% down payment will have monthly mortgage insurance. We have options to remove the mortgage insurance with as little as a 5% down payment but utilizing that option will increase the rate. Most of the time, clients will take the lower interest rate and then cancel the mortgage insurance once they have sufficient equity. In order to remove the mortgage insurance after you have purchased the home, you need to prove that you have at least 22% equity. When first purchasing the home, in order to not have mortgage insurance, you need to be prepared to pay at least a 20% down payment towards your home.

  • Down payments as low as 3%

  • Low, fixed interest rates

  • Cancellable mortgage insurance

  • Allows co-borrower flexibility

  • Accepts non-occupying co-borrowers

  • Accepts additional income sources

Conventional Requirements

The minimum credit score needed in order to obtain a conventional loan is 620. There are three credit bureaus that are considered when buying a home. The three credit bureaus are Equifax, Experian, and TransUnion. Each of these bureaus will give their own credit score (risk rating) for you. Sometimes, the credit bureaus will generate the same score only by coincidence, but most of the time you will see three different scores. The highest credit score given by any of the three bureaus is disregarded, the lowest credit score is then disregarded, and you are left with your middle credit score. The middle credit score is what is utilized to determine your eligibility and several other factors while obtaining a home loan. The property types allowed for conventional financing are single family homes, townhomes, villas, duplex(2 units), triplex (3 units), quadplex (4 units), and condos. You are able to live in one of the multi unit homes (duplex, triplex, or quadplex) and have the rental income to be received on the other units count towards your income to help qualify. Income also needs to be verified while obtaining a conventional mortgage. If you are self-employed, it is possible that we will review only your most recent tax year personal and business (if applicable) tax returns. If you are a wage-earner, someone that obtains a W2 at the end of the year, we will review your previous two year tax returns along with a current paystub. Don’t worry – if your previous income is significantly lower than your current income, we can use your higher income just as long as it is justified (increase in pay or a pay raise, promotion, working overtime hours, etc.). If you are retired, we would just need proof of your retirement income (Social Security, pension, etc.). We will also need to verify assets (bank statements) in order to obtain a conventional loan. Again, don’t worry – your funds to close can come as a gift just as long as it comes from an acceptable source (ie no cash money, unverifiable cash, etc.). Gift funds have to be verified but they are allowed.

Conventional Quick Facts

Minimum Score 620
Maximum Debt Ratio 50%
Minimum  Down Payment 3%
Pre-Payment Penalty No
Closing Cost Assistance Yes

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Local: 954-390-7994

Toll Free: 1-888-601-8344


Learn Tips About Buying a Home.

Ask us about our upcoming homebuyers workshops where you can learn everything you need to know about buying a home and what to expect during the home buying process. We cover all steps of the home buying process from beginning to end. Knowing the information taught in our workshops will make you an informed buyer, and informed buyers get the best interest rates and the best program possible.


What our clients say about their experience.

Don’t Take Our Word for It. Read What Our Customers Have to Say about AAA Capital Funding.

I just finished purchasing my home with the help of AAA Capital Funding for my mortgage. I was told buying a home could be a stressful process but I am very happy with how everything turned out. I was comfortable with Jason answering all of my questions the entire time and was well informed each step of the way.
My interest rate at closing was lower than originally quoted and I was still able to get help with my closing costs. I am definitely thrilled with the outcome and excited to be a new homeowner!!

N. Johnson

I just closed on my home yesterday (01/05/2018) and I am beyond happy and grateful that I chose AAA Capital Funding. Jason always answered my phone calls, texts and emails very quick. At one point I felt I was bothering him and I told him I am so sorry to bothered you and he replied to me “you don’t have to apologize you are the customer, don’t apologize again please I am here to help you” . I didn’t know absolutely nothing about mortgage I was completely clueless with the whole process. Actually the house that I just bought the seller wanted me to use their own lender which I found it kind of wrong but at the end I am glad I chose AAA Capital Funding. They gave me the best interest rate. It was a roller coaster for me but it only took 31 days to close. Between Jason and Paola were always communication I never ever felt alone in this process. I am writing this review and literally crying ( happy tears )because they made my dream come true. I am glad that I read their reviews on Google before starting this process. I will be always grateful to them. Thanks Jason, Paola and the AAA Capital Funding team. You guys are amazing. People believe me to hesitate to go with them these people are THE BEST. Thanks Jason one more time for everything you did for me.

JTA Cruz

My family and I closed on our home 2 weeks ago, I am forever thankful to the TEAM at AAA Capital, you guys ROCK!!!! You all stood by my family’s side every step of the way and because of you all we are the happiest first time owners in our new neighborhood. Thanks again!!!

T. Green

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Prefer to visit our office to sit down with a local agent? It’s easy. Just call our office directly or use the form below in order to make an appointment online. Local: 954-390-7994 | Toll Free: 1-888-601-8344