Are conventional loans fannie mae? Also, fannie increased down payment to 5% but aren't conventional loans already a minimum 5% down?

Fannie Mae is the clearing house where loans are purchased and then securitized, and ultimately sold on the open market.. Fannie Mae and Freddie Mac both function alike, however both have varying guidelines.. Right now you can get a 3% down conventional loan, however pending guidelines will change that to 5% within the next few months.. FHA will continue to offer 3.5% down payment programs, however their mortgage insurance is greatly over priced, so it wouldn't really be a good alternative.. your better off finding that extra 1.5% and go conventional.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

There are still 3% down Conventional options for qualified buyers. Also, no money down programs for eligible veterans and USDA for certain designated areas.I am in NJ and available to answer any questions.

William answered it well.

Conventional is a broad term that simply means it is not a Government loan (like FHA of VA). Conforming conventional is a better, but still broad term that refers to a loan that meets Fannie Mae or Freddie Mac guidelines. There are just a few days left for the official Fannie Mae 3% down loan option before it is gone. Freddie Mac got rid of it a long time ago. If you meet some first time home buyer guidelines, many state finance agencies will still offer 3% conventional loans. So check with a lender in your area to see what is available to you. This doesn't apply to you, but here in MN, the Minnesota Housing Finance Agency has a great program. Learn more about it at www.MNHomesAndLoans.com

It is worth getting the 5% down. I am not sure of what you are applying for a refinance or a purchase. I would work with someone that can give you all of your options so that you can make a good decision. My office is in Wall, New Jersey and I cover the whole state.Mona Hulteen 732233-9436

if you still need help, I will be glad to assist you, give me a call at (201) 434- 0005.