Conventional Loans

At Alpha Mortgage, we understand that no two buyers follow the exact same path to homeownership. For many, a Conventional Loan offers the right balance of flexibility, affordability, and choice. Whether your goal is to purchase your first home, upgrade to a second property, or expand your portfolio with an investment, this type of financing can give you more freedom than many government-backed alternatives.

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What Is a Conventional Loan?

Conventional Loans are mortgages not guaranteed by federal agencies. Instead, they meet standards set by Fannie Mae and Freddie Mac. Because of their widespread acceptance, they remain one of the most popular financing tools available today.

Down Payment Options

One reason many buyers prefer Conventional Loans is the range of down payment possibilities:

  • As little as 3% for qualified first-time homebuyers
  • 5% for most standard purchase scenarios
  • 20% down to eliminate Private Mortgage Insurance (PMI)
  • Larger down payments available to reduce monthly obligations and overall loan costs

$2,500 Fannie Mae Grant

Through Fannie Mae’s HomeReady® program, borrowers earning 50% or less of the Area Median Income (AMI) may qualify for a $2,500 grant. These funds can help cover:

  • Down payment needs
  • Closing costs
  • Other upfront purchase expenses

This assistance makes buying a home more attainable while easing the initial financial burden.

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Property Type

What Is a Conventional Loan?

Conventional Loans are mortgages not guaranteed by federal agencies. Instead, they meet standards set by Fannie Mae and Freddie Mac. Because of their widespread acceptance, they remain one of the most popular financing tools available today.

Down Payment Options

One reason many buyers prefer Conventional Loans is the range of down payment possibilities:

  • As little as 3% for qualified first-time homebuyers
  • 5% for most standard purchase scenarios
  • 20% down to eliminate Private Mortgage Insurance (PMI)
  • Larger down payments available to reduce monthly obligations and overall loan costs

$2,500 Fannie Mae Grant

Through Fannie Mae’s HomeReady® program, borrowers earning 50% or less of the Area Median Income (AMI) may qualify for a $2,500 grant. These funds can help cover:

  • Down payment needs
  • Closing costs
  • Other upfront purchase expenses

This assistance makes buying a home more attainable while easing the initial financial burden.

Programs Tailored to First-Time and Moderate-Income Buyers

Two standout programs are HomeReady® (Fannie Mae) and Home Possible® (Freddie Mac). Both were created to open doors for buyers with limited savings or income flexibility.

Key Features of HomeReady®

  • Down payments starting at 3%
  • Lower mortgage insurance than standard Conventional Loans
  • Income flexibility, including contributions from household members (even if not on the loan)
  • Access to the $2,500 Fannie Mae grant for eligible borrowers
  • Homeownership education to support long-term success

Key Features of Home Possible®

  • Minimum 3% down payment required
  • Reduced PMI to keep payments affordable
  • Options for family or non-occupying co-borrowers
  • Streamlined refinancing programs through Freddie Mac
  • Designed to help those with modest savings or incomes achieve ownership

Eligible Property Types

Conventional Loans (including HomeReady® and Home Possible®) allow you to purchase more than just a primary residence:

Primary Homes

Ideal for buyers ready to settle into their forever home.

Second Homes

Finance a vacation or seasonal property

Investment Properties

Expand into rentals or multi-unit opportunities

Who Is the Best Fit?

Conventional financing is ideal for borrowers with solid credit profiles and steady income. However, with options like HomeReady® and Home Possible®, even first-time and moderate-income buyers can access affordable paths to ownership.

Why Work with Alpha Mortgage for a Conventional Loan?

  • Flexible down payment structures
  • Competitive rate options
  • Financing available for primary, secondary, and investment properties
  • No upfront funding fees (unlike FHA or VA programs)
  • PMI removal once you reach 20% equity
  • Higher borrowing limits than FHA in many markets
  • Access to specialized programs like HomeReady® and Home Possible®
  • Up to $2,500 in grant funds for qualified buyers
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