Rates starting at % (APR %)¹

  • Loan amounts up to $726,200
  • 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)

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

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1Rates are updated daily at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.

The applicant is responsible for the following fees and costs at the time of closing: appraisal fee, tax service fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment. Other costs may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

Conforming Mortgages: For loan amounts from $50,000 to $726,200. Loan amounts up to $1,089,300 are available in Alaska, Guam and Hawaii. For purchase and limited cash out refinance, the maximum loan-to-value (LTV) and combined loan-to-value (CLTV) for a one unit property is 95% except for First Time Homebuyer and Home Ready programs which permit 97% financing. Loan amounts up to $726,200 are available in Puerto Rico and the maximum LTV and CLTV is 95%. Loans with a LTV of 80% or greater are subject to private mortgage insurance (PMI). PMI is applicable to conventional and not VA. The LTV and CLTV limits may vary depending on the property type, loan limit, loan program and occupancy.

Points are the responsibility of the borrower and not covered in promotions.

To receive any advertised product you must become a member of PenFed. Federally insured by the NCUA.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.