20% planning comparison
$90,00020% of an illustrative $450,000 purchase.
Conventional Loans
Compare a conventional mortgage for a Colorado purchase or refinance, with a plan for down payment, mortgage insurance and the home itself.
A suburban detached home. Photograph by Curtis Adams. Resized from the original; illustrative photograph. Source · Pexels License.
Where conventional financing can fit
Conventional loans include conforming mortgages that follow Fannie Mae or Freddie Mac requirements. Eligible programs can serve primary homes, second homes and investment properties, with different down payment and reserve requirements. Some primary-home programs offer a low down payment; that does not make every borrower or property eligible.
You may not need 20% down
As little as 3% down for eligible primary-home programs
20
%
Eligible 3% option
$13,5003% of the same price, if the borrower and property qualify.
Plan beyond the down payment
+Closing costs, prepaid items, reserves where required, and monthly housing costs still matter.
Illustrative down-payment amounts only. The counter moves from 20% to a possible program minimum; it does not show a rate, discount or individual approval.
Some conventional primary-home programs allow 3% down, with program-specific first-time buyer or income conditions. Second homes and rentals follow different rules. We compare the upfront cash, mortgage insurance and monthly payment together.
Smart home financing starts with strategy
Buying or refinancing? We compare options across our network of 150+ wholesale lenders, explain the trade-offs, and build a plan around your goals. Start with a pre-approval video conversation so you know what to expect before moving forward.
Conventional qualification: four pieces of the picture
Credit
ReviewCredit history, score model and automated underwriting matter. A universal 620 minimum is no longer accurate for all Fannie Mae DU cases; lender overlays and other paths can differ.
Income & debts
DTIDocument eligible income and compare recurring debts with gross monthly income. Automated approvals can permit up to 50% DTI; manual rules and lender limits differ.
Cash & property
PlanShow the source of funds, reserves if needed and intended occupancy. Documentation depends on income type, not a universal requirement for two years of tax returns.
Our pre-approval video call connects these pieces to your budget before you start making offers. Fannie Mae credit-score guidance · DTI guidance.
Conventional terms that change the decision
| Term | What it means for your plan |
|---|---|
| Conforming limit | For 2026, the one-unit national baseline is $832,750; the high-cost ceiling is $1,249,125. Your actual county limit—not the national ceiling—determines the boundary. |
| PMI | Mortgage insurance often applies above 80% LTV. Eligible borrower-requested cancellation at 80% of original value is different from scheduled automatic termination at 78%; payment history and other conditions apply. |
| LTV | Loan amount divided by the accepted property value. Purchase calculations generally use the lower of price and appraised value. |
| Clear to close | Underwriting conditions have been satisfied for closing preparation. Funding, final checks and settlement requirements still matter. |
Conventional: compare the path that fits
What is a conventional loan?
A conventional mortgage is not insured or guaranteed by the federal government. A conforming loan meets Fannie Mae or Freddie Mac guidelines; other conventional structures may fall outside those limits. We compare down payment, credit, income documentation and occupancy together.
With a down payment of at least 20%, borrower-paid private mortgage insurance generally is not required. With a smaller down payment, compare the actual mortgage insurance quote alongside the rate and closing costs. Cash-out limits and credit requirements depend on the current program and property; our team will verify those rather than use a single rule for every borrower.
We make the process easier with technology, clear comparisons and a pre-approval video strategy conversation. Use our Conventional Mortgage Calculator as a starting point.
30-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a fixed interest rate and scheduled principal-and-interest payment; taxes, insurance and other property costs can change.
A 30-year fixed-rate loan is a great option to keep your monthly mortgage payment lower or if you plan on staying in your home for years to come.
Whether 15 or 30 years or a customized term length (yes, we can do that), all the conventional options can allow extra principal payments without a prepayment penalty; our team verifies the terms of the specific loan.
So you can make additional payments to lower your interest and shave years off the mortgage term.
The reality is that most people will have moved or refinanced before they reach that 30-year mark and with equity growth use it to eliminate their mortgage. Looking for something more flexible? You can pick your mortgage term length. We offer mortgage terms from 8 – 30 Years.
15-Year Fixed Rate Mortgage
This conventional loan is fully amortized over a 15-year period and features constant monthly payments.
It offers all the advantages of the 30-year loan, plus a shorter payoff schedule; compare actual rates and the higher required payment.
The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment that cannot be changed later.
We advise many borrowers to opt for a 30-year fixed-rate loan with no prepayment penalty and voluntarily make one to two extra principal payments each year (every 6 months, for example). This will reduce your principal and have a similar effect while not locking you into a higher monthly mortgage payment as with a 15-year loan.
There are other strategies as well, such as making bi-weekly mortgage payments.
Adjustable Rate Mortgage (ARM)
An Adjustable Rate Mortgage, unlike fixed-rate mortgages that have an interest rate that remains the same for the life of the loan, has a variable interest rate that changes periodically.
There are limitations to frequency and the amount it can increase, however, once the fixed period expires, usually for 3, 5, 7, or 10 years.
The initial interest rate of an ARM is typically lower than that of a fixed-rate mortgage, but not always enough to warrant the fluctuations.
Consequently, an ARM may be a good option to consider if:
- You plan to own your home for only a few years or expect to not keep the ARM loan past the fixed period
- You expect an increase in future earnings
- Prevailing interest rates for a fixed mortgage are too high at the moment.
Low Down Payment Options
Fannie Mae HomeReady™ and Freddie Mac Home Possible® are ideal conventional loans for low-to-moderate-income qualified homebuyers in high-cost or underserved communities. They are also great for first-time home buyers.
HomeReady™ and Home Possible® offer conventional alternatives to FHA loans with competitive pricing on fixed-and adjustable-rate loans with down payments as low as 3% which is lower than a 3.5 % on an FHA loan if you have good credit.
These are a great option for first-time homebuyers with good credit.
Some conventional loans may be paired with assistance when the borrower, property and participating lender meet the program rules. Explore our Colorado down payment assistance guide and compare the full first-mortgage and assistance terms before planning an offer.
Talk with our team today to review your best options.
Wholesale lenders in our network
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Our value is in the comparison and the plan: matching the financing to your goals, explaining the costs, and coordinating the details with you and your agent. Program availability and lender fit depend on the transaction.
Primary home
Discuss low-down-payment programs, mortgage insurance and a payment that leaves room for the rest of your life. Start your financing plan →
Second home or rental
Occupancy changes down payment, reserves and income-documentation requirements. Start your financing plan →
Purchase or refinance
Compare total costs, loan term and cash remaining after closing. Start your financing plan →
Fixed rate or adjustable rate?
A fixed-rate mortgage offers a stable principal-and-interest payment. An adjustable-rate mortgage starts with an initial rate period and can change later. Review the index, margin and adjustment caps, including the payment you could face if you keep the home longer than planned.
The right loan begins with your goals
Tell us how you plan to use the home, what monthly payment feels comfortable and how long you expect to keep the financing. We compare options across lenders, explain the costs and help you choose a strategy with a clear next step.
Our pre-approval video call gives you time to ask questions, understand the trade-offs and coordinate your financing before an offer or refinance decision.
Conforming limits and property choices
Conforming loan limits depend on county and year. A condominium also requires attention to the project—not just your personal approval. For an investment property, discuss rental income, reserves and occupancy honestly before making an offer.
Compare the full monthly cost
Plan for principal and interest, property taxes, homeowners insurance and any HOA or district charges. A fixed interest rate does not freeze taxes or insurance. Private mortgage insurance may apply when your down payment is below 20%; review its cost and the rules for removal.
What to review before choosing
- Your income documentation, credit profile, debts and funds for closing.
- The property type, occupancy, appraisal and any condominium project review.
- Loan Estimate comparisons using the same loan amount, lock period and closing date.
Compare conventional financing with FHA and down payment assistance where appropriate.
Explore Mortgage Calculators
Compare purchase, refinance and affordability scenarios, then let our team help turn the estimate into a financing plan.
Conventional seller credits: plan the offer before signing
| Situation | Credit planning rule |
|---|---|
| Primary / second home: LTV above 90% | 3% |
| Primary / second home: LTV 75.01%–90% | 6% |
| Primary / second home: LTV 75% or less | 9% |
| Investment property: all eligible LTV tiers | 2% |
For Fannie Mae financing, percentages use the lower of sales price and appraised value. At exactly 10% down, the usual purchase LTV is 90%, entering the 6% tier; exactly 25% down enters the 9% tier at 75% LTV. Other requirements and transaction details still apply.
Seller credits are negotiated, not guaranteed. Eligible credits may cover approved closing costs, prepaid items or points; they do not replace a required down payment or become unrestricted cash back. A percentage ceiling is not a promise that every dollar can be used. Repair arrangements and price changes need documented approval, not an informal workaround.
Questions worth asking
No. Some conventional programs permit a smaller down payment. Mortgage insurance, pricing, occupancy and eligibility should be compared together.
Eligible investment properties may qualify, but down payment, rental-income documentation and reserve requirements differ from a primary residence.
Your principal and interest payment is generally fixed, but taxes, insurance, mortgage insurance and association costs can change.
The program, occupancy and your full financial picture determine the requirements. Our team will review income, credit, debts and available funds together, then explain which conventional options fit. A score alone does not establish approval.
Cancellation depends on your loan, payment history, balance and applicable rules. We can review the original value, current balance and servicer requirements with you. Do not assume an increase in value automatically removes the charge.
More resources for your financing decision
Explore these related guides and resources from your original loan page.
What our clients say
Reviews from Google47 client reviews
Paul and his team helped me with a very complicated transaction for a cash out mortgage. I would highly recommend him.
Paul was great. He helped us understand our loan better and put our needs first. I’d strongly recommend his services. Throughout our home buying process, Paul Cederholm demonstrated the highest level of professionalism throughout our home loan process, an amazing ability to explain complex mortgage terms in simple language and a willingness to work evenings and weekends to meet our closing deadline. We got our home purchase loan in Chicago thanks to Paul Cederholm. I would absolutely recommend Paul Cederholm for your home loan because I would recommend Paul. You can trust him and he is very informative. We can't recommend Paul Cederholm enough for your home financing needs.
My overall experience working with Paul was fantastic! All his help made the whole process seem easy. Throughout our home buying process, Paul Cederholm demonstrated a talent for making the mortgage process seamless and stress-free, truly professional lending services that exceeded our expectations and a knack for shopping rates and locking in an amazing deal for us. He is humble and easy-going, which made us feel at ease. I would absolutely recommend Paul Cederholm for your home loan because paul is a truly amazing advisor: el mejor! Without his help, our dream of owning our first home would not have been possible. After our introductory call ended, my husband and I looked at each other and said, "He is the one!" We were absolutely right.
Paul exceeded our expectations by offering excellent advice and answering our questions before we even had to ask them (mind reader!). Paul always had our best interests at heart, and his dedication and passion showed in every conversation. We are thankful to have worked with someone trustworthy and honest; someone who went above and beyond for us.
Thank you, Paul, for taking all of our doubts and worries away.
Thank you for cheering us on!
We absolutely recommend you and your team to anyone looking for the best mortgage advisor. We can't recommend Paul Cederholm enough for your home financing needs.
Exceptional experience with Paul and his team! We knew we wanted to work with Paul not long into our introductory call. He put us at ease as he explained all the details of what it would take to get into our first home. Numbers are scary when it comes to such a large purchase, but he walked us through the documents in a way that was easy to comprehend. He made sure we understood the information and answered all the questions we had before proceeding to the next task. He was always available for a call, through text, and email. Never once did we feel uncomfortable or like we were not being heard and understood. We got the best rate available to us based on our information and also helped us get a rate buy-down! Thank you, Paul and your team, for everything you did. We look forward to working with you again should the time come to refinance or get into a different home. Paul Cederholm brought impressive expertise across mortgage products that helped us find the perfect fit, incredible dedication to finding us the best mortgage rate and a willingness to work evenings and weekends to meet our closing deadline. I'd tell anyone looking for a home loan to call Paul Cederholm — highly recommend Paul and his team as we felt comfortable, understood, and empowered throughout the entire process!. I would highly recommend Paul Cederholm — truly an exceptional mortgage professional.
(Translated by Google) Excellent service from Cederholm.
(Original)
Excelente atendimento de Cederholm.
Working with Paul and his team was an absolute dream! We had a particularly complex transaction, Paul made navigating feel easy and less stressful.
Paul and his team were absolutely amazing! Insanely fast response time to any question I had and amazing explanations throughout the whole process. I can’t imagine using another broker ever again!
If you are looking for a mortgage broker for your next home purchase, I highly recommend Paul Cederholm and his team at Cederholm Mortgage Advisors 🏡.
Paul helped me plan the financing for my new home, and I am so grateful for his guidance throughout the process. At the beginning, I felt nervous because the home buying process can feel very intimidating. With Paul’s care, patience, and expertise, I grew into a confident home buyer by the time we reached closing 🌿.
Paul was always available to answer my questions and explained everything in a clear, supportive, and non-intimidating way. He stayed one step ahead throughout the loan process and helped ensure my loan approval moved along quickly and smoothly.
Paul also has a wonderful team. Their attention to detail and clear communication helped me feel supported and never overwhelmed during the process 🌸.
I truly loved working with Paul. He was wonderful to have by my side during such an important step in my life. If you are looking for a knowledgeable and caring mortgage advisor who will guide you every step of the way, I wholeheartedly recommend Paul Cederholm and his team.
Buying my first house was an exceptional experience because Paul was tremendously helpful, and communicative. I can’t thank him and his team enough and highly recommend!!!
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Recently I had the pleasure of working with Paul and I can confidently say that my experience was nothing short of exceptional.
Trust is a crucial element when it comes to financial decisions, He took the time to understand my unique needs and goals, ensuring that every step of the process was transparent and tailored specifically to me. I never felt rushed or pressured; instead, I felt supported and empowered to make informed choices. Whether it was providing insights into market trends or introducing me to other professionals who could assist with my financial journey, Paul went above and beyond to ensure I had access to the best tools and information available.
I can say that Paul genuinely cares about his clients and strives to build lasting relationships. I can't recommend him enough for anyone looking for a mortgage broker who feels like family, fosters trust, and provides invaluable resources. Thank you, Paul, for making this experience so positive and rewarding!
We started the process in June and closed in November because we were indecisive and Paul was patient, he heard our request and never pushed us to buy until we were comfortable with our purchase. Luckily, he waited on us and we closed on the perfect home. We loved his 24/7 availability for us even on his vacation days. Thanks for an amazing work !
Paul is a great lender, my clients love working with him. He is very detailed oriented, organized, responsive. Always trying to find the best program/rates for everyone. I truly recommend his services.
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You and your team were very helpful throughout the entire process! I could always rely on you to help answer questions and be available at all times. I would highly recommend!
Paul was amazing to work with! Unbelievable response times and guided us through every step of the process.
Paul was great to work with - so friendly, understanding and helpful! We felt very cared for throughout the process and he never made us feel like we were bothering him with our questions. He was always upfront and honest and we are so grateful for his help!
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We bought an amazing Condo in the heart of DTC. Paul was very helpful and made us, first home buyers, feel very confident in the process of buying a home. I would highly recommend!
Paul went above and beyond to get all the numbers to work for us. He was available for questions at any time, even at the most unusual times. He consistently would give us updates and let us know that everything was going well or immediately would call us if there are any issues. The whole process went incredibly smoothly and made the home buying process super easy!
Thank you Mr Paul, you were truly amazing and on top of everything! Love your proactive approach in covering all anticipated requests ahead of putting into UW. Your professionalism and high level expertise truly shines thru and I’m so glad we connected through the grapevines. Can’t thank you enough and look forward to doing this again!
My wife and I worked with Paul when purchasing our first and second home. He was recommended to us from a trusted friend so we decided to go with him when trying to find the best loan for us. Going into it, we had no idea what we were doing but Paul was extremely attentive, did a great job explaining the details, and I felt like he always put our needs first. It was a pleasure working with Paul and we will definitely be working with Paul again in the future!
Was a great experience working with Edge to get into our first home. Everything was made easy and clear for us to understand
Paul was excellent! He communicated all of our options and so we can make the best decision possible! He kept us informed the entire time as to where we were in the process so we were able to have a smooth and efficient closing!
Working with Paul and his team was amazing! Paul was straight to the point, gave us guidelines on what to and not to do, made us feel comfortable buying a home, and made it a very simple process. We will forever work with Paul and continue to recommend him to everyone we know!
Paul was absolutely amazing to work with. He kept us in the loop through EVERY step of the home mortgage process. He took the extra time to explain things we didn’t understand, and also had all of our best interests in mind. I truly felt like we were in the best hands possible when it comes to a big financial decision! We can’t thank you enough!!!
Paul was incredible! He made my first-time home buying experience way easier than I had expected. He was incredibly knowledgable and more than willing to explain anything I wasn't sure of. He was super helpful throughout and made the whole process go smoother than I thought was possible.
Paul is amazing! I would highly recommend working with him. He is so responsive and truly cares about each and every client. There are no questions left unanswered when working with Paul and he makes the home buying process easy peasy.
Paul is full service. That is a hard thing to find anymore, and I am proud to be partnered with such a professional, creative, customer-oriented loan officer. His system and process is streamlined and user friendly, making the buyer’s process less stressful, and making my job easier. I love the level of communication on every transaction, and Paul always asks if there is anything that he could improve on; constantly striving to be the best. I have raving reviews from our mutual clients. Paul is an excellent choice when you need a home loan! Highly recommend.
Working with Paul was an incredible experience. I was the listing agent for Sellers and he was the lender for the Buyer. He promised a smooth transaction up from and that’s exactly what we received. He met every deadline, early in fact, and was on the ball with keeping us updated every step of the way. His communication and correspondence was spot on. Thank you, Paul, for such a great experience and a smooth transaction!
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Hands down the easiest financial process I have ever been through. I refinanced my home loan with Paul and his team and I just sat back and relaxed while they did their thing. It was a quick and seamless process. I can’t thank Paul enough for his advice and expertise. Paul’s personal attention and his availability throughout the process always made me feel like I was his only client. Top notch service! I highly recommend Paul and his team.
Great team and service. Answered all of our questions and made sure we understood the refinance process. 10/10 recommend!
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Paul was wonderful to work with during our home-buying experience! He was very professional, personable and patient as we worked thru the various scenarios available to us, and was true to his word when he said it was his number 1 goal to ensure we were left in a better situation than when he'd come to us. Thanks to Paul's efforts and diligence, we got precisely the outcome we were looking for, and couldn't be happier!
I highly recommend Paul and his team. They worked their way and explained each step to me and what was expected of me to be quick and efficient. Thank you for a great experience.
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Paul is a great lender he made the process painless and was very informative. He helped get our credit up and rate down so we could get the best situation for our house purchase.
I recommend Paul for any financing you may need!
Paul has been one of the easiest Lenders to work with. Super honest businessman and extremely knowledgeable. I will continue to do business with him. He is a great and trustworthy lender!
Paul is straight up a rockstar. If you have a deal that a lender said can’t be done, or they don’t know how to fix. Paul has the answers and can get the job done. Very creative when it comes to helping structure his clients Loans and giving the advice to get the deal closed. He is an amazing lender partner.
It is truly a pleasure partnering with Paul Cederholm! He is an exceptional Loan Officer who deeply cares for his clients and those he works with. As a Realtor, it is extremely important to have industry partners that value your clients as much as you do. He will jump through all the hoops needed to be able to get the best product for the client and close the deal all while impeccably communicating each step to all that are involved. Thank you Paul for taking such great care of my clients!
Paul was extremely helpful with the refinance process. He kept us in the loop during the entire process and when the original plan fell through, he was able to work a new plan that turned out better than the original. Thanks Paul!
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Plan your next move
Bring your goals and a property address if you have one. Paul Cederholm, mortgage expert and real estate financing strategist, can help you compare the financing choices and plan your next step.
Ready to begin? Start your loan application. Prefer a direct conversation? Call 303-931-6798.
*Information, scenarios, and calculations are for educational and illustrative purposes only—not a loan offer, a commitment to lend, a rate quote or an approval. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Examples are not guaranteed results. Our team can review the details for your situation.