This type of loans provides you with lots of flexibility. It works well for purchase or refinance transactions and is very often used for primary or secondary homes and investment properties. Terms and conditions of conventional loans are fully in line with guidelines created by Fannie Mae and Freddie Mac agencies that created standards for underwriting, loan limits and terms. Conventional loans are considered to be very affordable, as down payments can start as low as 3% depending area of the property, customers’ credit history and type of the property. But typical requirements for your down payment are going to be from 5% to 25%.