Conventional Loans
The conventional loan is the benchmark mortgage — the one every other program is an alternative to. If your credit and income are solid, it’s usually the cheapest path to a home: down payments start at 3%, and unlike FHA, the mortgage insurance goes away once you have enough equity.
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What You Can Use It For
- Buying a primary home, second home, or investment property
- Refinancing to a better rate or shorter term
- First-time purchases using gift funds and down payment assistance
- Condo and 2–4 unit purchases
Why Borrowers Choose It
- Minimum down payment of just 3% — the 20% rule is a myth
- Mortgage insurance only applies above 80% LTV and can be removed as equity grows
- Gift funds allowed for the down payment
- Down payment assistance available for the lesser of 3% or $15,000
Program Highlights
- Minimum FICO 620
- Max loan amount based on county limits
- Minimum down payment 3%
- Full income documentation; minimum 2 years employment
- Gift funds allowed for down payment
- Mortgage insurance applies above 80% LTV (removable later)
- SFR, condo, 2–4 units
- Down payment assistance available: lesser of 3% or $15,000
Highlights reflect lender program guidelines at the time of writing — programs change, and your terms depend on your full application.
Conventional Around Here
For salaried buyers in Richmond, Winchester, and the county seats, conventional is usually the value play: 3% down, insurance that eventually drops, and pricing that rewards good credit. County limits are rarely a constraint at local price points — when they are, you’ve graduated to the jumbo page.
Common Questions
Conventional or FHA — how do I choose?
Rough rule: stronger credit favors conventional (cheaper insurance that eventually drops); thinner credit favors FHA (gentler pricing at lower scores). The honest answer is we price both side by side on your actual file and let the numbers decide.
Can I buy a rental with a conventional loan?
Yes — with a larger down payment and full income qualifying. If your tax returns understate your cash flow or you’re scaling a portfolio, compare it against the DSCR loan before committing.
Let’s Talk About Your Loan
Marcos Gil · REALTOR® · Your local guide to Red River Gorge financing options
Equal Housing Lender. This is not a commitment to lend or extend credit. Programs, rates, terms, and conditions are subject to change without notice; all applicants are subject to credit and underwriting approval, and not all applicants will qualify. Program details shown reflect available lender guidelines at the time of writing and may differ at application. Consult your accountant about tax matters. The loan programs described on this page are offered by licensed third-party lenders, not by Marcos Gil. Marcos is a licensed Kentucky real estate agent — not a mortgage loan originator — and can introduce you to a licensed loan officer for any program here. Verify any lender or loan officer at NMLS Consumer Access: nmlsconsumeraccess.org.
Ready to talk about a real purchase? A free consultation puts local eyes on your plan — and connects you with the right licensed lender for this loan type.
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