The standard, done right.

A 30-year or 15-year fixed-rate (or 5/6 ARM) loan that meets Fannie Mae or Freddie Mac eligibility. The default product for most borrowers — best pricing, most flexibility, and the longest list of eligible property types of any agency program. First-time buyers can put as little as 3% down (97% LTV) on a 1-unit primary; subsequent buyers start at 5% down for primaries.

Mortgage insurance is required above 80% LTV. Borrower-paid PMI auto-terminates at 78% original LTV via the amortization schedule, can be requested off at 80% with appraisal, and is removed automatically at the midpoint of the loan term — far better treatment than FHA MIP.

AUS findings (DU Approve/Eligible or LPA Accept/Eligible) drive the file. DTI typically caps at 50% with strong compensating factors, 45% standard. Reserves vary by occupancy and property type — usually 0–6 months PITI on a primary, 6+ on a second home or investment.

Fannie Mae's low- and moderate-income program. Borrower income must be at or below 80% of the area median income (AMI) for the property's census tract. In exchange, the borrower gets reduced mortgage insurance pricing, a $2,500 grant on very-low-income files, and homeownership-education credit toward closing costs.

Down payment as low as 3% on a 1-unit primary, 5% on a 2-unit primary, 25% on a 3–4 unit. Non-occupant co-borrowers are allowed (a parent can co-sign without living in the home). Boarder income — rent paid by a roommate — counts toward qualifying income with documentation.

The reduced MI rate is the structural advantage. On a 95% LTV file, HomeReady MI typically prices 30–60 bps lower per year than standard PMI. That difference compounds for as long as MI is on the loan.

Functionally similar to HomeReady but underwritten through Freddie Mac's LPA. Same 80% AMI cap, same reduced MI pricing, same 3% down minimum on a 1-unit primary. Different fine print: Home Possible permits non-borrowing household member income to count toward the AMI determination but not toward qualifying income; HomeReady does not consider non-borrower income at all.

Worth running a file through both AUS engines on borderline cases — sometimes LPA approves what DU does not, and vice versa. Pricing differences are usually within 1/8 of a point.

Buy a property and roll the renovation budget into the same loan, with the appraisal coming in on the as-completed (ARV) value. Renovation funds disburse through draws to the contractor as work progresses; the borrower closes once and lives with one mortgage.

Eligible improvements are broad — structural changes, additions, kitchens, baths, roofs, mechanicals, even pools and detached ADUs. Up to 75% of the as-completed value can finance renovation. Owner-occupants, second-home buyers, and investors all qualify (with their respective LTV caps).

Construction must be completed within 15 months. Contractor must be licensed and approved by the lender; HUD consultants are required on jobs with significant structural work.

Functionally parallel to HomeStyle. Purchase + renovation rolled into a single first-mortgage closing, qualified on as-completed value. Up to 75% of the after-improvement value can fund renovation. Useful when LPA approves a file DU does not, or when the broker has a Freddie-leaning servicer relationship that prices better.

CHOICERenovation also has a sub-program — CHOICEReno eXPress — for renovations under 10% of as-completed value, with simplified documentation and faster underwriting.

A single-closing construction loan that converts to permanent financing automatically when the home is finished. The borrower closes once, before construction begins. Construction-period payments are interest-only on disbursed funds; once the certificate of occupancy is issued and the loan modifies to perm, full P&I begins.

The construction period maxes out at 11 months. Funds release through draws after virtual or on-site inspections confirm work completion; the wholesale lender holds 5% of construction cost as a contingency reserve. Loan amount is the lesser of the conforming loan limit for the property's county/units or the appraised as-completed value × maximum LTV.

Eligible on 1-unit primaries, second homes, and 1-unit investment property — up to 95% LTV on a primary, 90% on a second home, 85% on a 1-unit investment. Demolition of an existing structure is permitted; the existing foundation can be reused if local code allows. Owner-builders are permitted on conventional only (with significant overlay).