What are Conventional Loans?

Conventional loans are one of the most common ways Charlottesville residents finance their homes—whether it’s a charming brick house near UVA, a new build in Albemarle County, or a townhouse close to the Downtown Mall.

Unlike FHA, VA, or USDA loans, conventional loans aren’t backed by the government. Instead, they follow the guidelines of Fannie Mae and Freddie Mac. For many local buyers, these loans can mean better rates, flexible terms, and fewer fees—but they do require stronger credit, a solid income, and a down payment of at least 5%.

If you have good-to-excellent credit and are ready to invest in a home here in Charlottesville, a conventional loan could be your best fit.

Most Common Types of Conventional Loans

Fixed Rate Mortgages

Perfect for homeowners who want stability—your payment never changes.

• 30-Year Fixed Loan
  Lowest monthly payment—ideal for families planting roots in Charlottesville’s suburban neighborhoods.

• 20-Year Fixed Loan
  Balance of manageable payments and faster payoff.

• 15-Year Fixed Loan
  Lower rate and interest savings—great for buyers ready to build equity quickly, whether in Belmont or Fry’s Spring.

• 10-Year Fixed Loan
  Fastest way to own your home outright—ideal if you’re looking at higher-end Albemarle properties.

• 5-Year Fixed Loan
  Lowest rate and fastest payoff—best for those with short-term goals or second homes in the Blue Ridge area.

Adjustable Rate Mortgages (ARMs)

These start with a fixed rate, then adjust annually. They’re popular with buyers who may relocate or upgrade within a few years.

• 3/1 ARM – Fixed for 3 years, then adjustable

• 5/1 ARM – Fixed for 5 years, then adjustable

• 7/1 ARM – Fixed for 7 years, then adjustable

(Great for young professionals moving near UVA Hospital or graduate students buying their first home before career changes.)

Conventional Loan Down Payment Requirements

• Purchasing a Home: Expect to put down 5%–20% of the purchase price. For example, that could mean buying a starter home in Belmont with 5% down, or putting more down on a vineyard property in Albemarle to lower your payment.

• Refinancing: Most lenders require at least 10% equity in your property.

What Types of Properties are Eligible?

With conventional loans in Charlottesville, you can purchase:

• Single-family homes (perfect for neighborhoods like Forest Lakes or Hollymead)

• Condos & Townhomes (Downtown Charlottesville or 5th Street Station area)

• Planned Unit Developments (PUDs)

• 1–4 Family Residences (ideal if you’re buying a duplex or multi-family property to rent near UVA).

Bringing it Home

Whether you’re buying your first condo near the Downtown Mall, refinancing your Ivy home, or investing in a family property close to UVA, conventional loans are a versatile option. We’ll help you find the right fit so you can feel at home in Charlottesville.