Feel Stable and Secure in your Home and Payment Plan
  • No lender fees2
  • Up to $2,500 in lender credits1
  • Loan amounts up to $647,200
  • Great Rates
  • 97% financing for first-time homebuyers
What is a Conventional Loan?

A conventional mortgage is a loan that “conforms” to the Federal Finance Housing Agency (FHFA) guidelines and are guaranteed by Fannie Mae or Freddie Mac. Conventional mortgages are sometimes called conforming mortgages.

Types of Conventional Loans

What is a Conventional Fixed-Rate Mortgage?

A fixed-rate mortgage has a rate that is locked in for the life (or term) of the loan. The interest rate will not change.

What is a Conventional Adjustable-Rate Mortgage?

An Adjustable-Rate Mortgage (ARM) has an introductory period with a lower interest rate that will adjust up or down with the market once the introductory period is up. Depending upon current interest rates – an ARM’s rate can be lower than a fixed-rate mortgage. That’s especially true for a Jumbo or Super Jumbo mortgage.

Mortgage Knowledge Center

What is a Conforming Loan?
What is a Conventional Loan?

How Do I Get a Conventional Loan?

You'll need the following to qualify for a conventional loan for all borrowers:

  • Satisfactory credit score (typically 650 or higher)
  • Proof of income - typically 1 - 2 months of paystubs
  • At least 1 year of W2s

Possible additional financial verification like:

  • Self-employment income
  • Current debts information (auto, alimony, credit card, etc.)
  • Acceptable debt-to-income ratio (DTI)

PenFed Mortgage Products

Disclosures Print Icon Print

1For eligible fixed rate, ARM, and VA loans PenFed offers to all members who submit a completed home purchase mortgage application on or after March 1, 2020. Members can receive the lender credit upon closing with PenFed, subject to qualification and approval. For loans $0-$199,999 the lender credit will be: $500. For loans $200,000-$699,999 the lender credit will be: $1,000. For loans $700,000 and up the lender credit will be: $2,500. Pre-Approvals and refinance applications are not eligible for the lender credit. The seller and/or other credits must be reduced if the loan has reached the maximum allowable credit limit per the loan product. Please contact your PenFed Mortgage Loan Officer for more details. The lender credit is available for all funded purchase mortgages in all states, including District of Columbia, Puerto Rico and Guam.

2Other fees may apply, such as discount points to buy down your rate.

3Qualified veterans with their full entitlement can borrow up to the country limit with no down payment. Veterans who have one or more active VA loans or who defaulted on a previous VA loan may be required to make a down payment.

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