Conventional Loans
Conventional Loans: Expanded Agency Solutions for Today’s Borrowers
Unlock More Approvals with Expanded Conventional Options
Newrez Conventional loans give brokers the freedom to serve more qualified borrowers with up to 97% LTV, flexible terms, and competitive agency pricing backed by our direct seller/servicer status with Fannie Mae ®, Freddie Mac ®, and Ginnie Mae ®.
Because we sell and service directly, you get better execution, fewer overlays, smoother processes, and faster closings from application to funding.
Why Brokers Choose Newrez for Conventional
Direct Agency Execution
As a direct seller/servicer to Fannie, Freddie, and Ginnie, Newrez passes through competitive pricing, expanded guidelines, and faster operational flow.
Higher LTV Flexibility
Many lenders cap at 95%. Newrez goes up to 97% LTV, strengthening your ability to serve first-time buyers and low-down-payment borrowers.
More Property Types, More Opportunities
Conventional loans support 1–4 unit homes, condos, co-ops, PUDs, modular homes, and manufactured housing.
Wide Range of Terms
Offer clients loan terms that actually fit their budget with fixed 10–30-year options and 5/6M, 7/6M, 10/6M ARMs.
Affordable Housing Solutions
HomeReady® and Home Possible® give creditworthy low-to-moderate income borrowers 3% down, flexible income qualification, and reduced mortgage insurance requirements.
Common borrower scenarios include:
- Buyers who would like to put 3% down through HomeReady® or Home Possible®.
- Traditional buyers with strong credit and income.
- Move-up borrowers leveraging equity for competitive pricing.
- Buyers seeking more control over mortgage insurance, term length, and pricing structure.
Newrez Conventional loans are built to capture more of these borrowers with expanded guidelines, flexible terms, and higher LTV options.
Conventional Products at a Glance
Best for: Traditional, well-qualified borrowers.
Key Highlights:
- Up to 97% LTV (for eligible first-time homebuyers).
- Minimum 580 credit score
- 10–30-year fixed and 5/6M, 7/6M, 10/6M ARMs.
- Purchase, rate/term, and cash-out refinance available.
- Supports SFRs, condos, co-ops, manufactured homes, modular homes, and PUDs.
- Temporary buydowns available.
Terms are dependent on other factors. For precise pricing and terms, run in Blueprint.
Best for: First-time homebuyers & low-to-moderate income borrowers.
Key Highlights:
- 3% down payment.
- 580 minimum credit score.
- Lower mortgage insurance requirements vs standard conventional.
- Flexible income: ADU rental income allowed.
- Borrower income eligibility up to 80% of AMI.
Terms are dependent on other factors. For precise pricing and terms, run in Blueprint.
Best for: Borrowers in high-cost areas needing higher loan limits.
Key Highlights:
- High-balance fixed and ARMs available.
- Up to 95% LTV
Standard agency credit and underwriting guidelines apply.
Best for: Borrowers with previous setbacks but strong current capacity.
Key Highlights:
- Chapter 7 Bankruptcy: 4-year waiting period from the discharge or dismissal date
- Chapter 13 Bankruptcy: 2 years post-discharge or 4 years post-dismissal.
- Multiple Bankruptcies: 5 years from most recent discharge or dismissal date
- Foreclosure: 7-year waiting period required
- Deed-in-Lieu/Pre-Foreclosure: 4-year waiting period required
- Modified Mortgages: For guidance, visit Fannie Mae Selling Guide.
- Short sale: FNMA: 4-year waiting period / FHLMC: 48 months seasoning required. If within last 7 years, restrictions apply.
Terms are dependent on other factors. For precise pricing and terms, run in Blueprint.
Fast Scenario Guide
Borrower needs a low-down-payment option. Use standard Conventional product, or HomeReady ® or Home Possible ® if < or = 80% AMI for flexible income, and reduced mortgage insurance.
Leverage High-Balance Conventional for higher loan limits and up to 95% LTV, keeping agency pricing intact.
Borrower wants a condo or co-op. Conventional allows condos, co-ops, and PUDs, broadening property type approvals.
If the borrower has past bankruptcy or short sale, review agency waiting periods to determine eligibility (e.g., 4 years post-bankruptcy discharge).
Quick Reference & Rules of Thumb
- Max LTV: 97% for eligible first-time home buyers, or < or = 80% AMI; 95% for high balance.
- Minimum credit score: Typically 660 for conventional; 580 for affordable programs.
- Mortgage Insurance: Reduced MI for HomeReady® & Home Possible®.
- Terms: 10–30-year fixed; multiple ARM options available.
For precise pricing and AUS findings, run in Blueprint.
Why Newrez for Conventional
- Direct seller/servicer advantages with competitive pricing and smoother execution.
- Expanded agency guidelines to reach more borrowers, including higher LTV and more property types.
- Affordable lending programs (HomeReady®, Home Possible®) are built to help partners increase purchase volume.
- Exceptional operational support and overnight/weekend lock protection.
FAQ
Up to 97% LTV for eligible first-time homebuyers.
Yes—both manufactured and modular homes are eligible property types.
Yes—HomeReady®/Home Possible® allow ADU rental income.
Chapter 7 Bankruptcy: 4 years; Chapter 13 Bankruptcy: 2 years post-discharge or 4 years post-dismissal; Multiple bankruptcies: 5 years; Foreclosure: 7 years; Deed-in-Lieu/Pre-Foreclosure: 4 years; Short sale: 4 years (FNMA) / 48 months seasoning (FHLMC)
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