When it comes to a conventional mortgage, what you see is what you get. These loans are easier to understand but harder to get unless you have a strong financial standing. Why? Well, because qualifying can be a bit tougher in comparison to government loans.

Still, at Treadstone, all of our conventional loans offer fixed-rate programs with a variety of payment terms. Down payment options start at only 3% for qualified consumers, but many prefer a higher down payment to avoid larger fees and mortgage insurance. And unlike FHA and RD loans, putting 20% down means you face no mortgage insurance, which can result in major savings over the life of the loan.

Bottom line? If you have dollars to put down and don’t want to be restricted on where you can buy, a conventional loan is a solid choice.

  • 3% down payment minimum on owner-occupied
  • Down payment can be 100% gift from a relative or employer
  • Conventional financing is more credit score sensitive
  • PMI on loans with less than 20% down
  • PMI rates are also sensitive to credit score
  • The seller can contribute toward buyer closing costs and escrows – If the borrower is putting less than 10% down, max seller contribution is 3% of sales price. If the borrower is putting 10% or more, max contribution is 6%
  • The maximum mortgage is $510,400
  • Before applying for a mortgage
  • (Maybe slight variance for extenuating

    • 4 years must pass after a short sale
    • 4 years must pass after a bankruptcy
    • 7 years must pass after a foreclosure

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Down payment requirements, closing costs, and loan amounts are for illustrative purposes only; subject to credit qualification, not all applicants may qualify. Not a commitment to lend. Not affiliated with or endorsed by any government institution. Please contact us for an exact quote and for more information on fees and terms.

Treadstone Funding propelled by Neighborhood Loans NMLS 222982 “Illinois Residential Mortgage Licensee No. MB.6759826. For licensing information, go to