Conventional Loans: Flexible Financing for Homebuyers
A conventional loan is a mortgage that is not backed by a government agency like the FHA, VA, or USDA. These loans are ideal for borrowers with good credit and stable income, offering flexible terms and competitive rates.
Key Benefits
- ✅ Various Down Payment Options – As low as 3% down for qualified buyers.
- ✅ No Mortgage Insurance with 20% Down – Save on monthly costs by avoiding private mortgage insurance (PMI).
- ✅ Competitive Interest Rates – Rates vary based on credit score, down payment, and loan terms.
- ✅ Flexible Property Options – Can be used for primary homes, vacation homes, and investment properties.
Who Qualifies?
- • Borrowers with a credit score of 620 or higher typically qualify.
- • A stable income and employment history are required.
- • Debt-to-income (DTI) ratio must meet lender guidelines.
Types of Conventional Loans
📄 Conforming Loans
Meet Fannie Mae and Freddie Mac guidelines, with loan limits set annually.
📄 Non-Conforming (Jumbo) Loans
For higher-priced homes that exceed conforming loan limits.
Conventional loans offer flexibility, competitive terms, and lower long-term costs for buyers who qualify.