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Conventional loans in Chester County

Most Chester County buyers with a solid score end up on a conventional loan, for one reason that shows up on the statement: the mortgage insurance comes off. Here is the 2026 line, and which side of it your township is on.

Conventional loans, in round numbers
2026 conforming limit, one unit$832,750
Minimum down payment3% under the income rule
Request mortgage insurance removal at80% of original value
Minimum credit score620

Where $832,750 lands in this county

FHFA set the 2026 conforming limit for a one-unit home at $832,750, and no Pennsylvania county is designated high-cost, so that number is the line in every township here (fhfa.gov, November 2025). Set it against what actually closed in July 2026 and the county sorts itself out quickly.

AreaSold median, July 2026
Downingtown postal area$589,500
Exton postal area$749,995
Malvern$825,000
Berwyn$1,197,450

Those are Movoto sold medians for July 2026. The Exton and Downingtown figures cover whole postal areas, so they carry a lot of West Whiteland, Uwchlan and East Caln along with the boroughs. Malvern’s median sits $7,750 under the conforming line, which is close enough that the appraisal decides it. Berwyn’s sits roughly $365,000 over.

Three percent down, and the rule attached to it

Fannie Mae’s HomeReady and Freddie Mac’s Home Possible allow 3% down on a one-unit primary residence when income is at or under 80% of the area median income for the property’s address (freddiemac.com, February 2026). The dollar figure moves by address and by year, and the 2026 figures went into Fannie’s underwriting system on June 13, 2026, so the lender runs the address through the agency lookup and reads back what applies.

Two other pieces of the agency rulebook are worth raising. First-time buyers at or under 100% of area median income have the risk-based price adjustments waived (fanniemae.com, April 2026). HomeReady buyers at or under 50% of area median income can take a $2,500 credit toward closing on loans through February 1, 2027 (wtop.com, August 2026); ask whether it is still funded when you apply. The credit floor for a conventional loan is 620, and the pricing keeps getting better up to 780.

The mortgage insurance, and when it stops

Private mortgage insurance is on a conventional loan any time the down payment is under 20%. What it costs depends on the score and the down payment. What matters more is that it ends. Federal law lets you ask the servicer to cancel once the balance reaches 80% of the original value, with a good payment history and no second lien behind you. The servicer has to drop it automatically at 78% on the original amortization schedule, and again at the midpoint of the term regardless (consumerfinance.gov, June 2025).

In round numbers, on a house at Downingtown’s July 2026 sold median of $589,500, 3% down is $17,685 and the loan opens at $571,815. The cancellation request goes in when the balance reaches $471,600. Paying ahead of schedule gets you there sooner, and so can a new appraisal, subject to the servicer’s own seasoning rules.

Twins, multi-unit buildings and the jumbo line

Conventional financing covers one to four units. Owner-occupied two- to four-unit properties go to 95% loan-to-value under both agencies, with 3% of the price from your own funds when the loan-to-value passes 80% (freddiemac.com, February 2026), subject to lender approval. For 2026 the two-unit ceiling is $1,066,250, three units $1,288,800, four units $1,601,750.

Past $832,750 on a single unit the loan becomes a jumbo, which is ordinary business in Berwyn, Chadds Ford and the Great Valley side of Malvern, and rare in Coatesville and Oxford. Price alone does not decide it. A bigger down payment can hold a higher-priced house inside the conforming limit, and that is worth pricing both ways before you sign anything.

The line item people forget at the table

Pennsylvania’s realty transfer tax is 1% state plus 1% local in most of Chester County, and the county lists three exceptions: 2.5% in Malvern Borough and Tredyffrin Township, and 3% in the City of Coatesville (chesco.org, read August 2026). The split between buyer and seller is customary, usually half each, and both parties are liable for it.

On a house at Exton’s July 2026 sold median of $749,995, a buyer’s customary half of the standard 2% comes to about $7,500. In Berwyn it depends which township the driveway is in: the Easttown side pays 2% and the Tredyffrin side 2.5%, which is half a point on the same block. Run your own figure on the transfer tax calculator.

Answers on the record

What is the income limit for 3% down?

Fannie Mae's HomeReady and Freddie Mac's Home Possible allow 3% down on a one-unit primary residence when household income is at or under 80% of the area median income for that address. The dollar figure depends on the exact address and changes each year, so the lender runs it through the agency lookup before you plan around it.

When does private mortgage insurance come off?

You can ask the servicer to cancel it once the balance reaches 80% of the original value, with a good payment history and no second lien. The servicer has to drop it automatically at 78% on the original schedule, and again at the midpoint of the term. That is the difference most Chester County buyers with a score near 700 are weighing.

At what price does a Chester County loan become jumbo?

When the loan amount passes $832,750 on a one-unit home. Price is not the test, loan amount is, so a larger down payment can keep a higher-priced house inside conforming. Above that line see jumbo loans.

Can I buy a twin or a small multi-unit building this way?

Yes, up to four units, if you live in one of them. Both agencies allow 5% down on an owner-occupied two- to four-unit property, subject to lender approval, and the 2026 limits run $1,066,250 for two units, $1,288,800 for three and $1,601,750 for four.

Do I need 20% down?

No. Twenty percent avoids mortgage insurance altogether, and it is the usual expectation on a jumbo loan, but 3% to 10% is common here and the insurance ends once you reach 80%. On a house at Downingtown's July 2026 sold median of $589,500, 3% is $17,685.

Write it down instead

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Two ways to start

Say the township, the price range and roughly where your score sits. Estimates only until an application is underwritten, and subject to lender approval. A licensed Pennsylvania lender calls you back, usually the same business day, and prices the conventional option against the alternatives for that address.

One number, one form, same desk. Use the one you have time for.

(484) 290-8667