PHFA - Conventional

One of the loan options with PHFA is a conventional mortgage.

What’s a Conventional loan?

Fannie Mae and Freddie Mac offer a mortgage program for prospective home buyers. These loans are commonly called “conventional” or “conforming” loans because they conform to the underwriting guidelines (rules) of Fannie Mae or Freddie Mac. Think of the conventional mortgage as your father’s mortgage (i.e. 5%, 10%, 15%, 20% down payment).

The Keystone Home Loan with conventional financing requires a 20 percent down payment. However, the HFA Preferred Risk Sharing™ and HFA Preferred™ loans require a minimum 3% down payment and utilize the conventional underwriting guidelines.

The only difference between the HFA Preferred™ and HFA Preferred Risk Sharing™ is that the HFA Preferred Risk Sharing™ requires monthly mortgage insurance for down payments of less than 20%.

A conventional home loan is the best way to finance a home with a large down payment (i.e. twenty percent or greater).