A conventional loan is a mortgage that is not insured by a federal government agency (like FHA, VA, or USDA). Many conventional loans follow Fannie Mae or Freddie Mac guidelines and may be available for an eligible primary residence, second home, or investment property, depending on the program and your qualifications.
Next, here’s what we review during the process.
When you apply for a conventional mortgage, we review key details such as your income, credit history, assets, and the property you’re buying. From there, we help you compare program options, estimate cash to close, and prepare for a smooth closing.
Support you can expect from BankSouth Mortgage:
Depending on the program, qualified buyers may be able to purchase with a low down payment on an eligible property. Down payment requirements can vary by program and property type.
Conventional loan programs can support a range of goals, from first-time homebuying to affordable lending options, renovation loan products, and eligible manufactured housing.
Some programs may allow eligible gift funds or other approved sources to help cover down payment and closing costs, based on guidelines and documentation requirements.
You’ll have a loan expert who can explain what to expect, what documents you need, and how to stay on track through the process.
Interest‑only payment structures are available on many non‑QM programs, allowing borrowers to keep monthly payments lower during the initial years.
Below are several programs and product types you may hear us recommend. Eligibility and availability vary by program, borrower, property, and investor guidelines.
HomeReady is designed to support qualified buyers and may include income limits in many areas. You can look up area median income (AMI) limits by address using Fannie Mae’s Area Median Income Lookup Tool. This option is often considered by buyers looking for a conventional path with affordability-focused guidelines. Homebuyer education may be required in some situations.
Standard 97 is a low down payment conventional option often used by qualified first-time homebuyers. It may be a fit if you want a Fannie Mae low down payment option that is not typically tied to income limits, depending on guidelines and your scenario. Homebuyer education may be required in some situations.
MH Advantage is for eligible manufactured housing designed to meet specific standards intended to align more closely with site-built homes. This option is primarily differentiated by property eligibility requirements and may offer higher loan-to-value options for qualified buyers purchasing eligible properties.
Home Possible is designed to support eligible buyers and may include income limits in many areas. You can check income limits by property address using Freddie Mac’s Home Possible® Income & Property Eligibility Tool. It’s often evaluated by buyers who want affordability-focused conventional options. Homebuyer education may be required in some situations.
HomeOne is a low down payment option often used by qualified first-time homebuyers and may not have income limits in some cases, depending on guidelines. Homebuyer education may be required in certain situations.
In some areas, our Community Lending Program may be available for homes located in designated community lending census tracts. It’s intended for primary residences and generally requires automated underwriting (DU or LPA). A minimum credit score may apply (for example, 640), depending on guidelines.
For eligible Georgia homebuyers, the Georgia Dream Peach Advantage program pairs a conventional first mortgage with down payment assistance that may help with upfront costs, depending on guidelines. This option is open to qualifying first-time and repeat homebuyers and uses income limits tied to area median income (AMI). Availability and eligibility vary by location, borrower qualifications, and program requirements.
Learn more about the Georgia Dream Peach Advantage Loan Program.
If a conventional program isn’t the right fit for a second home or non-owner-occupied (investment) purchase, Non-QM (Non-Qualified Mortgage) loans may be available through select investors. Non-QM options are designed for certain non-traditional income or documentation scenarios and can vary by investor guidelines.
You may want to explore conventional financing if you:
If you’re not sure where you fit, that’s normal. We’ll help you narrow it down quickly based on your goals and the home you want to buy.
A clearer path to homeownership
Low down payment options may make it easier to get into a home sooner, if you qualify.
More ways to match your budget
Different program guidelines can help you find a structure that fits your financial comfort zone.
Confidence through guidance
You won’t have to guess what comes next. We’ll help you understand your options and move forward with a plan.
A mortgage experience built around you
We aim to make the process simple and streamlined while keeping you informed at every step.
What is a conventional loan?
A conventional loan is a mortgage that is not insured by a federal government agency such as FHA, VA, or USDA.
Can I buy a home with a low down payment using a conventional loan?
Some conventional programs may allow a low down payment for qualified buyers purchasing an eligible primary residence. Down payment requirements depend on the program, your financial profile, and the property.
Do conventional loan programs have income limits?
Some programs may have income limits and others may not. You can also look up income limits by address using Fannie Mae’s Area Median Income Lookup Tool (often used for HomeReady®) and Freddie Mac’s Home Possible® Income & Property Eligibility Tool (for Home Possible®). We can help you determine what applies based on the program and the property location.
Is homebuyer education required for a conventional loan?
In certain low down payment programs, homebuyer education may be required in specific situations, such as when all occupying borrowers are first-time homebuyers.
Do conventional loans require mortgage insurance?
Some conventional loans may require mortgage insurance depending on factors like down payment, loan-to-value, and borrower qualifications. In some cases, mortgage insurance may not be required. We can help you understand what applies to your scenario.
If mortgage insurance is required, what payment options may be available?
Depending on the program and your scenario, mortgage insurance may be structured in different ways, such as monthly borrower-paid MI, single-premium MI, or lender-paid MI.
What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM)?
A fixed-rate mortgage keeps the same principal and interest payment for the life of the loan. An adjustable-rate mortgage (ARM) typically starts with a fixed period, then the rate can adjust based on market conditions for the remaining term.
What is a jumbo loan?
A jumbo loan is generally used when the loan amount exceeds standard conforming limits. Jumbo and other non-conforming options can have different guidelines than conforming conventional loans, depending on the investor and product.
Can I use a conventional loan to buy a manufactured home?
Some manufactured homes may be eligible through specific conventional options such as MH Advantage, depending on property requirements and guidelines.
Credit and collateral are subject to approval. Terms and conditions apply. Rates, program terms and conditions are subject to change without notice. Some programs have geographic restrictions. This is not a commitment to lend.
