Conventional loans are the most common type of mortgage in the U.S.—and for good reason. Unlike FHA or VA loans, they’re not backed by the government, which allows for more competitive interest rates and fewer property restrictions. They’re ideal for homebuyers with solid credit and stable income who want flexibility, lower long-term costs, and broader financing options.

Whether you're a first-time homebuyer with strong credit, purchasing a second home or investment property, or financing a higher-priced home with a jumbo loan, there’s likely a conventional loan option that fits your needs.

Popular Conventional Loan Programs

Here’s a breakdown of some of the most widely used conventional loan options in Pennsylvania. These programs vary by income limits, down payment requirements, and qualification guidelines. Conventional loans typically require higher credit scores than government-backed options, but they offer more flexibility and long-term savings for qualified borrowers.

Conventional 97 Loan – 3% Down Payment Option

The Conventional 97 loan allows first-time homebuyers to purchase a home with just 3% down. Designed to compete with FHA loans, this program offers key benefits like the ability to cancel private mortgage insurance (PMI) once you reach 20% equity. It’s a great fit for buyers with good credit who want to minimize upfront costs while retaining the advantages of conventional financing.

[[Learn more about Conventional 97 Loans]]

HomeReady® Loan – Expanded Income Flexibility

Fannie Mae’s HomeReady program offers a 3% down option with added flexibility. It allows income from non-borrowing household members (such as adult children or parents) to be considered during qualification. HomeReady also features reduced mortgage insurance and more flexible credit requirements, making it ideal for low-to-moderate income buyers.

[[Learn more about HomeReady Loans]]