Purchase
Conventional loans
The default answer for most buyers with a 620 score and 3% down.
What a Conventional loan actually is
A conventional loan is any mortgage that is not insured by a government agency. Ours are conforming, which means they meet Fannie Mae and Freddie Mac guidelines and are priced against the agency market rather than a single investor's appetite. For the 2026 calendar year the baseline one-unit conforming limit in Philadelphia, Montgomery, Bucks, Delaware and Chester counties is $832,750 (sample figure).
The reason most Philadelphia buyers end up here is mortgage insurance. Conventional PMI is cancellable: you can request removal at 80% loan-to-value and it terminates automatically at 78% of the original value. FHA's annual MIP, by contrast, stays for the life of the loan whenever you start above 90% LTV. On a $360,000 loan that difference is roughly $165 a month once you cross the threshold.
Best suited to
- Buyers with a 680 or higher score who want mortgage insurance that ends
- Anyone putting down 5% to 20% on a one to four unit Philadelphia property
- Second-home purchases in the Poconos or at the shore
- Buyers whose condo building would fail FHA project approval
What comes with the loan
- Automated underwriting through Desktop Underwriter with a same-day findings report
- Appraisal ordered within one business day of your signed intent to proceed
- PMI quotes from three insurers so you see monthly, single-premium and lender-paid side by side
- A written amortization schedule showing your 80% and 78% PMI dates before closing
- Float-down option once during the lock period if the market improves by 0.250% or more
- Rate lock of 30, 45, 60 or 90 days with published extension pricing
How a file moves
- 01
Pre-qualification
Fifteen minutes on the phone or the online form. We pull a soft credit file, look at income structure and tell you the program and price range that actually fit. No document upload yet.
- 02
Pre-approval
Full credit pull, income and asset documents, and a Desktop Underwriter run. You get a pre-approval letter with a defined purchase price and a named underwriter, which is what listing agents in this market look for.
- 03
Under contract
We order the appraisal and title within one business day, issue your Loan Estimate inside three business days, and lock the rate when you tell us to lock.
- 04
Underwriting
Conditions are issued in one batch, not a trickle. Median time from complete file to clear-to-close on our conventional purchases is 12 business days (sample figure).
- 05
Closing
Closing Disclosure three business days before settlement, final numbers reconciled against your Loan Estimate line by line, and wire instructions confirmed by phone callback.
Why borrowers choose it
PMI you can get rid of
Request cancellation at 80% LTV in writing, automatic termination at 78% on the original schedule.
Gift funds allowed in full
The entire down payment may be gifted on a one-unit primary residence. We supply the gift letter template.
Appraisal waivers
Roughly one in five of our conforming files receives a Desktop Underwriter appraisal waiver, saving $625 and about nine days.
Price improvements for score
Loan-level price adjustments improve at 680, 700, 740 and 780. We will tell you if a 14-point rescore is worth chasing.
What to watch out for
- Under 5% down we apply a 640 score overlay rather than the agency 620.
- Condominium projects still need a completed lender questionnaire; investor-concentration above 50% is a decline.
- PMI pricing moves sharply between 660 and 700; a rescore can matter more than the rate itself.
Conventional questions we get asked
Still unclear? Call (215) 555-0145 and ask for the originator covering your county.
All questionsYes, on a one-unit primary residence if at least one borrower is a first-time buyer as agency guidelines define it, meaning no ownership interest in a principal residence in the previous three years. Income limits apply on some 3% down products. Our overlay is a 640 score under 5% down.
Conventional PMI is a private insurance premium that you can cancel at 80% loan-to-value and which terminates automatically at 78% of the original value. FHA charges an upfront premium of 1.75% plus an annual premium that remains for the life of the loan when your starting LTV is above 90%.
Yes. A two-unit primary residence needs 15% down, three and four units need 25%. Rental income from the other units can be counted with a Form 1007 rent schedule, usually at 75% of gross market rent.
You have three practical options: renegotiate the contract price, bring the difference in cash, or file a reconsideration of value with comparable sales we help you assemble. We review every appraisal in house before it reaches underwriting.
Programs worth comparing
FHA
3.5% down from a 580 score, 10% down from 500
Jumbo
Above $832,750, to $3,000,000, 10% down from 700 FICO
First-time buyer
PHFA pairing, grant stacking and the 3% down route
Find out if Conventional fits
Fifteen minutes, a soft credit pull, and a straight answer about which program actually suits your file.
No application fee. Soft credit pull at pre-qualification. Flat $1,095 origination at closing.