Conventional Loans
Flexible Home Financing
Myrtle Beach & Charleston

The Most Popular Mortgage Option for Homebuyers

Conventional loans are the most common type of mortgage in the United States, offering competitive rates, flexible terms, and lower costs for borrowers with good credit and stable income. Unlike government-backed loans (FHA, VA, USDA), conventional loans are not insured by the federal government - which means they often have stricter qualification requirements but can offer better terms for qualified borrowers.

Anchor Mortgage is a Direct Conventional Lender approved by Fannie Mae and Freddie Mac. We underwrite, approve, and fund conventional loans in-house with our own warehouse lines of credit - meaning faster closings, competitive rates, and direct communication throughout your home purchase.

Conventional Loan Benefits

Low Down Payment Options
Put down as little as 3% for first-time homebuyers or 5% for repeat buyers. Higher down payments (20%+) eliminate the need for private mortgage insurance (PMI).

No Upfront Mortgage Insurance
Unlike FHA loans, conventional loans don't charge an upfront mortgage insurance premium - you only pay monthly PMI if you put down less than 20%.

PMI Can Be Removed
Once you reach 20% equity in your home, PMI automatically drops off - saving you money every month. With FHA, mortgage insurance lasts for the life of the loan.

Higher Loan Limits
Conventional loans allow higher loan amounts than FHA in most counties, making them ideal for higher-priced homes.

No Property Restrictions
Conventional loans are more flexible about property condition than FHA. Minor cosmetic issues typically don't disqualify a property.

Better for Investment Properties
Planning to buy a second home or investment property? Conventional loans allow non-owner-occupied purchases (FHA and VA don't).

Faster Closing Process
Conventional loans typically have fewer bureaucratic requirements than government loans, leading to faster closings.

Who Benefits from Conventional Loans?

  • ✅ Buyers with good credit (680+ credit score)
  • ✅ Borrowers with stable income and employment history
  • ✅ Those with down payment savings (3-20%)
  • ✅ Homebuyers purchasing higher-priced properties
  • ✅ Second home or investment property buyers
  • ✅ Anyone wanting to avoid lifetime mortgage insurance
  • ✅ Refinancing homeowners looking to eliminate FHA MIP

Conventional Loan Requirements

Credit Score: Minimum 620 (680+ for best rates)
Down Payment: 3% minimum for first-time buyers, 5% for repeat buyers, 20% to avoid PMI
Debt-to-Income Ratio: Maximum 43-50% depending on credit and compensating factors
Employment: Stable 2-year employment history
Reserves: May require 2-6 months of mortgage payments in reserves depending on down payment and credit
Property: Primary residence, second home, or investment property

Conventional Loan Limits 2025-2026

Standard Counties (Horry, Charleston, etc.): $806,500
High-Cost Areas: Up to $1,209,750

These limits are for single-family homes. Limits increase for 2-4 unit properties. Loans above these amounts are considered Jumbo loans.

Private Mortgage Insurance (PMI)

If you put down less than 20%, you'll pay PMI. Here's how it works:

PMI Cost: 0.3%-1.5% of loan amount annually (paid monthly)
How Long: Until you reach 20% equity
Removal: Automatic at 22% equity, or request removal at 20% equity

PMI vs. FHA MIP:

  • PMI is typically cheaper than FHA mortgage insurance
  • PMI can be removed - FHA MIP lasts for the life of the loan (unless 10%+ down)
  • No upfront premium with conventional (FHA charges 1.75% upfront)

Conventional Loan Types

Fixed-Rate Conventional Loans

  • 30-year fixed (most popular)
  • 20-year fixed
  • 15-year fixed (lower rate, higher payment)
  • 10-year fixed

Adjustable-Rate Mortgages (ARMs)

  • 5/1 ARM, 7/1 ARM, 10/1 ARM
  • Lower initial rate, adjusts after fixed period
  • Good for buyers who plan to move or refinance within 5-10 years

Conforming vs. Non-Conforming

  • Conforming: Meets Fannie Mae/Freddie Mac guidelines (most common)
  • Non-Conforming: Doesn't meet standards (Jumbo loans, unique situations)

Property Types Eligible for Conventional Loans

  • ✅ Single-family homes
  • ✅ Townhouses
  • ✅ Condos (warrantable and some non-warrantable)
  • ✅ Multi-unit properties (2-4 units)
  • ✅ Second homes
  • ✅ Investment properties
  • ✅ New construction
  • ✅ Manufactured homes (meeting standards)

Conventional Loan Process with Anchor Mortgage

Step 1: Pre-Approval
Submit your application and documents. As a direct lender, we pre-approve you in-house - typically within 24-48 hours using Fannie Mae's automated underwriting system (Desktop Underwriter).

Step 2: Find Your Home
Work with your real estate agent to find a home. Conventional loans are more flexible on property condition than FHA.

Step 3: Appraisal & Underwriting
Property appraisal ordered. Our in-house underwriting team processes your loan through Fannie Mae or Freddie Mac automated systems for faster approvals.

Step 4: Closing
We control the entire process as a direct lender, allowing us to close most conventional loans in 21-30 days.

Conventional Refinancing Options

Rate-and-Term Refinance

  • Lower your interest rate
  • Change loan term (30-year to 15-year)
  • Switch from ARM to fixed rate
  • No cash-out

Cash-Out Refinance

  • Access your home's equity
  • Refinance up to 80% of home value
  • Use funds for home improvements, debt consolidation, investments
  • Higher rates than rate-and-term refinance

Conventional Streamline Refinance

  • Fast refinance with reduced documentation
  • No appraisal in many cases
  • Must be refinancing an existing conventional loan

Why Choose Anchor Mortgage for Your Conventional Loan?

Direct Conventional Lender
We fund conventional loans with our own warehouse lines of credit - no waiting on third-party lenders. Faster decisions, better communication.

Fannie Mae & Freddie Mac Approved
We're approved sellers/servicers, meaning we can originate, underwrite, and close conventional loans to Fannie Mae and Freddie Mac standards.

Competitive Rates
As a direct lender, we offer competitive rates without broker markup. Your rate comes directly from us.

Local Market Expertise
We understand Myrtle Beach and Charleston real estate markets and can guide you on property selection and appraisal concerns.

Serving Myrtle Beach & Charleston
Whether you're buying in North Myrtle Beach, Murrells Inlet, downtown Charleston, Mount Pleasant, or Summerville - we're your local conventional lender.

Multiple Property Types
Primary residence, second home, or investment property - we finance them all.

Common Conventional Loan Questions

What credit score do I need for a conventional loan?
Minimum is 620, but 680+ gets you the best rates and terms. Below 680, you'll pay higher rates and may need more reserves.

How much down payment do I need?
Minimum 3% for first-time buyers, 5% for repeat buyers. 20% down eliminates PMI. Investment properties require 15-25% down.

Can I buy a second home with a conventional loan?
Yes! Conventional loans allow second homes with as little as 10% down (though 20% avoids PMI).

What's the difference between conventional and FHA?
Conventional typically requires better credit (680+ vs 580+) and more down payment flexibility, but offers lower mortgage insurance and PMI removal. FHA is easier to qualify for but has lifetime mortgage insurance.

Can I use gift funds for down payment?
Yes, but there are restrictions. For primary residence with 20%+ down, 100% can be gift funds. Less than 20% down requires some of your own funds (varies by scenario).

Do I need an appraisal?
Usually yes, but some refinances may qualify for appraisal waiver through Fannie Mae/Freddie Mac automated systems.

Ready to Get Started with a Conventional Loan?

Conventional loans offer competitive rates, flexible terms, and the ability to remove mortgage insurance once you reach 20% equity. Whether you're buying your first home, upgrading, or investing in property, conventional financing provides excellent options for qualified borrowers.

Contact Dante Campanelli and the Anchor Mortgage team today:
📞 Call: 843-367-9900
📧 Email: info@anchormortgagellc.com
🌐 Apply Online: anchormortgagellc.com

Serving homebuyers in Myrtle Beach, Charleston, and throughout South Carolina with conventional home loans.