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Andrade Real Estate Services

Primary Residence

  • Primary Residence
  • Traditional
  • 620 Min FICO
  • 3% Min Down

The Conventional Loan Program is one of the most common paths to homeownership in the U.S. Unlike FHA or VA loans, it is not government-backed. Instead, it is based on the borrower’s credit profile, income, and ability to repay. This program is especially beneficial for borrowers with stronger credit histories, higher income stability, and the desire to avoid lifetime mortgage insurance costs.

 

This program is ideal for buyers who:

  • Have a credit score of 620 or higher (better rates at 700+).
  • Want the option to remove PMI once equity reaches 20%.
  • Are purchasing a primary residence (1–4 units).
  • Prefer conventional flexibility over FHA restrictions.

Property Type

Credit Score

Min Down

Notes

SFR

620+

3%

If LTV > 95%, at least one borrower must be a first-time buyer. Homebuyer education required.

SFR

No Credit

10%

No borrower may have a credit score. If a score exists, it must be used and standard or reduced FICO rules apply. Max DTI 36%.

2-4 units

620+

5%

Borrower must occupy one unit. Standard income & DTI requirements apply.

2-4 units

No Credit

10%

No borrower may have a credit score. If a score exists, it must be used and standard or reduced FICO rules apply. Max DTI 36%.

Condo

620+

3%

Limited review up to 90% LTV. Full review required above 90%. Project must meet eligibility rules.

Condo

No Credit

10%

No borrower may have a credit score. If a score exists, it must be used and standard or reduced FICO rules apply. Max DTI 36%.

Manufactured Home

620+

5%

Must be on a permanent foundation, multi-wide (not singlewide). Not eligible for 3% down programs.

Occupancy Requirement

Primary residence


Borrower must intend to occupy within 60 days of closing. Second homes and investment properties are not included in this matrix.

Military stationed > 100 miles away


May qualify if a family member occupies the home, or the borrower intends to occupy upon discharge.

Residency Eligibility

Eligible


  • Valid SSN — must have a valid Social Security Number (SSN).
  • Permanent residents — must provide a valid, unexpired Green Card.
  • Non-permanent residents — eligible with valid visa or Employment Authorization Document (EAD).
  • Individuals with work permits are eligible (must show valid documentation per Freddie Mac).

Ineligible


  • ITIN borrowers are ineligible.
  • Foreign nationals are ineligible.
  • Borrowers without a social security number, or with a number that cannot be validated through the SSA are ineligible.
  • Borrowers with diplomatic immunity are ineligible.
  • Borrowers previously convicted of mortgage fraud are ineligible.

Income Consistency Requirements

Employment History


  • Two years of employment history required with the same employer or with different employers in the same line of work,
  • One year may be acceptable if the borrower has at least five years of prior experience in the same line of work or holds a professional license in that field,
  • Education or training may be used to fill gaps in history,
  • If on temporary disability, income used will be the lower of the disability pay or the regular employment income.

Notes


  • Frequent job changes are allowed if they are within the same line of work and the income is stable or increasing, provided this is supported by documentation,
  • Gaps over 6 months require explanation + current 6 months continuous employment,
  • Education and training must be documented with transcripts, diploma, certificate, professional license, or official school/training program documentation,
  • An employer’s letter is required and must confirm the return-to-work date. If the return-to-work date is before the first mortgage payment, use regular income; if the return-to-work date is after the first mortgage payment, use the lower of disability income or regular income.

Income Type

Requirement

Documentation

Wage Earner

2 years stable employment history (gaps allowed if explained). Must show likelihood of continuance.

30 days paystubs + 2 years W-2s; VOE if required.

Self-Employed

2 years of self-employment required (1 year possible with ≥5 years prior work history in same field or relevant professional license.). Must demonstrate stable or increasing income.

2 years tax returns; YTD P&L; business bank statements if requested.

Part Time

2-year history required; must be likely to continue.

W-2s, paystubs, VOE verifying hours and history.

Seasonal

2-year history required; must be likely to continue.

W-2s, paystubs, VOE or employer letter confirming rehire pattern.

Social Security, Disability, and Retirement Income

Must be expected to continue ≥ 3 years.

Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).

Alimony / Child Support

Must be court-ordered or written agreement; ≥ 3 years continuance.

Divorce decree, separation agreement, or order + 6 months proof of receipt.

Down Payment Funds

Eligible Sources


Requirements


  • 1 month of bank statements if using Freddie Mac,
  • 2 months of bank statements if using Fannie Mae,
  • Large deposits must be sourced,
  • Gift funds allowed with gift letter + proof of transfer (no seasoning required),
  • Retirement funds require withdrawal terms + statements,
  • Asset sales require bill of sale + proof of deposit.

Gift Funds

Eligible Donors


Allowed for down payment and/or closing costs from acceptable sources such as:


  • Spouse or domestic partner,
  • Parent, step-parent, or foster parent,
  • Child, step-child, foster child, or adopted child,
  • Brother or sister, step-sibling, foster sibling, or adopted sibling,
  • Grandparent, great-grandparent, step-grandparent, foster grandparent, or grandchild,
  • Aunt, uncle, niece, nephew, or cousin,
  • In-laws, future in-laws, fiancĂ© or fiancĂ©e, ex-spouse, or former relative,
  • Relative of a domestic partner,
  • Godparents.

Ineligible Donors


Not allowed as sources of down payment or closing cost funds:


  • Real estate agent,
  • Client’s employer,
  • Loan originator or loan officer,
  • Builder or contractor,
  • Developer.

Temporary Interest Rate Buydowns

Types Allowed


3–2–1, 2–1, and 1–0 buydowns are allowed.

Scope


Purchases only. Eligible for primary residences (and second homes).

Restrictions & Qualification


Not allowed for investment properties or refinances. Borrower must qualify at the full note rate.

Loan Amounts

Minimum Loan Amount


$50,000 minimum (case-by-case exceptions possible).

Maximum Loan Limits


Must meet FHFA conforming loan limit values.

Non-Occupant Co-Borrowers

Eligibility


  • Allowed on primary residence purchases.
  • Must be on title and loan.
  • Their income, assets, and liabilities are included in qualification.

Down Payment & Exceptions


  • Minimum down payment is 5% when a non-occupant co-borrower is on the loan.

Property Types

Eligible


  • SFRs (Single-Family Residences),
  • 2–4 Units (must occupy one unit),
  • PUDs (attached/detached),
  • Condominium (attached/detached), Fannie Mae warrantable,
  • Modular/prefabricated properties 1-unit only,
  • Manufactured Homes (on permanent foundation, at least 12 feet wide and have a minimum 400 square feet of gross living area.).

Ineligible


  • Non-Warrantable Condos,
  • Condo Hotels or Motels (projects managed or operated as hotel/motel, hotel/motel conversions),
  • Unique properties,
  • Agricultural-type properties, farms, orchards, ranches,
  • Properties zoned for agricultural use
  • Commercial property,
  • Vacant land or land development properties,
  • House Boats, boat slips, timeshares and other forms of property that are not real estates,
  • Manufactured home located in age restricted community,
  • A manufactured home moved from another site (i.e., previously installed at another site) Home must have been delivered directly from the manufacturer/dealer to its current site.

Seller Contributions

Maximum Contribution


  • 3% max: Down Payment < 10%,
  • 6% max: Down Payment 10% - 25%
  • 9% max: Down Payment > 25%.

Allowed Uses


  • Closing costs,
  • Prepaid items,
  • Discount points,
  • Buydown escrows.

Disclaimer – This matrix was published on 09/20/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

Questions on “Primary Residence”

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