Buying a home
Conventional loan
A conforming loan that follows Fannie Mae and Freddie Mac guidelines. It is the most common way our Atlanta clients buy, and the only common program where the mortgage insurance eventually comes off.
How the conventional loan works
A conventional loan is not backed by a government agency. Instead it follows the underwriting rules that Fannie Mae and Freddie Mac publish, which is why the paperwork is predictable and the pricing is competitive for borrowers with solid credit.
For most metro Atlanta purchases in 2026, the conforming limit sits comfortably above the median sale price in Fulton, DeKalb, Cobb and Gwinnett counties, so a conventional loan covers the majority of the homes our clients tour on a Saturday afternoon.
The headline feature is private mortgage insurance that ends. Once your loan balance reaches 80% of the home's value, you can request that the PMI be removed. On an FHA loan the equivalent charge usually lasts the life of the loan.
What you get with us
Not program features. The things our office does on every file of this type.
Rate lock for 45 days
Standard on purchase files, with a float-down option if the market improves before you close.
Appraisal ordered day one
We order the appraisal the day your contract is ratified so the valuation is never the thing holding up your closing.
PMI removal reminder
We flag the month your balance is projected to hit 80% and send a note so you can ask your servicer to drop the insurance.
Gift funds accepted
Documented gifts from family can cover the full down payment on a primary residence.
One underwriter, start to finish
Your file is not passed between desks. The person who reviews your income is the person who clears your conditions.
Seller credit structuring
We model how much of a seller credit you can actually use before the program caps it, before your agent writes the offer.
Step by step
Six stages, and what each one actually asks of you.
Pre-approval
Upload income and asset documents. We verify them and issue a letter your agent can attach to an offer, usually within one business day.
House hunting
Your letter carries a price you are actually approved for. If you want to offer above it, call us and we will re-run the numbers the same afternoon.
Contract and appraisal
Once you are under contract we lock your rate, order the appraisal and send the initial disclosures for e-signature.
Underwriting
An underwriter reviews the complete file, issues conditions, and we clear them together. Most files need two or three items.
Clear to close
You get the Closing Disclosure three business days before closing so there are no surprises at the table.
Closing day
Sign at the attorney's office, get your keys, and we send the PMI removal projection a week later.
Why people choose it
Insurance that ends
PMI is cancellable at 20% equity, unlike the permanent charge on most FHA loans.
Lower total cost
For borrowers above roughly 700, conventional pricing usually beats FHA once insurance is counted.
Works on any property type
Single family, townhome, condo, duplex, second home or rental all have a conventional path.
Fast underwriting
Automated approvals mean fewer manual reviews and a shorter path to clear to close.
What moves your pricing
Six levers underwriting actually looks at. Two of them you can change before you apply.
| Factor | How it affects you |
|---|---|
| Credit score | The single biggest lever on your rate. Every 20-point band changes pricing. |
| Down payment | 3%, 5%, 10%, 15% and 20% are all pricing breakpoints. |
| Debt-to-income | Most approvals land under 45%. We can often go higher with reserves. |
| Occupancy | Primary homes price best, then second homes, then rentals. |
| Property type | Condos and multi-unit homes carry small pricing adjustments. |
| Loan term | A 15-year loan prices below a 30-year, with a higher payment. |
Programs people compare this with
- FHA loanInsured by the Federal Housing Administration. Built for buyers whose credit is still recovering.Compare
- First-time buyer programOur bundled path: a low-down-payment first mortgage plus the Georgia assistance funds you qualify for.Compare
- Jumbo loanFinancing above the conforming limit, for Buckhead, Druid Hills and the north side.Compare
Questions about this program
Plan on your down payment plus roughly 2% to 3% of the price for closing costs in Georgia. On a $375,000 home with 5% down that is about $18,750 plus $9,000 to $11,000, before any seller credit.
The 3% down option is reserved for first-time buyers or borrowers under the area median income. If you owned in the last three years and earn above the limit, the floor is 5%.
You can request removal at 80% loan-to-value based on the original value, and the servicer must remove it automatically at 78%. A new appraisal can accelerate this if your home appreciated.
Yes. We need a signed gift letter, proof the funds left the donor's account and proof they arrived in yours. On a primary residence the entire down payment can be gifted.
Magnolia Lending Group
Ready to look at a conventional loan?
A pre-approval takes about four minutes to start and one business day to issue. No cost and no obligation.
Free consultation. Sample rates and assistance amounts shown on this site are illustrations, not offers.