Reliable Financing With Flexible Options
Conventional loans are ideal for borrowers with solid credit and steady income. They offer stability, predictable payments, and competitive terms.
• Flexible Terms
Choose from fixed or adjustable rates to fit your needs.
Affordable Options
Down payments as low as 3% for qualified buyers.
Trusted Choice
The most widely used mortgage program in the U.S.
Why Choose a Conventional Loan?
Mortgage interest is the fee a lender charges for lending you money to buy a home.Â
- Lower Interest Rates for Qualified Borrowers: Especially for those with good credit and stable income.
- Variety of Property Types: Available for primary homes, second homes, and investment properties.
- No Private Mortgage Insurance (PMI) With 20% Down::Avoid PMI if you put down at least 20%.
- Higher Loan Limits:Conventional loans often have higher limits than government-backed loans.
Types of Conventional Loans
Mortgage interest is the fee a lender charges for lending you money to buy a home.Â
- Conforming Loans: Loans that meet Fannie Mae and Freddie Mac’s guidelines, with limits set by the Federal Housing Finance Agency (FHFA).
- Non-Conforming (Jumbo) Loans: For properties that exceed conforming loan limits, often used for luxury homes.
- Fixed-Rate Loans:Stable interest rate and monthly payments over the life of the loan.
- Adjustable-Rate Mortgages (ARMs): Lower introductory rates that adjust after a set period.
How to Apply for a Conventional Loan
Mortgage interest is the fee a lender charges for lending you money to buy a home.Â
- Pre-Approval: Get pre-approved by providing your income, assets, and credit score to a lender. This helps you understand your buying power.
- Loan Shopping:Compare rates and terms from different lenders to find the best fit for your situation.
- Submit Your Application: :Provide required documentation, such as tax returns, pay stubs, and credit reports.
- Underwriting Process: The lender will review your financial details, property appraisal, and other factors to approve the loan.
- Closing: Once approved, finalize your loan and take ownership of your new home.
Conventional Loan vs. FHA Loan: Which is Right for You?
A high-level summary of the steps involved in working with a mortgage broker from initial consultation to closing on your loan.
- Credit Requirements:FHA loans are more lenient on credit scores, while conventional loans typically require higher scores.
- Down Payments: FHA loans require 3.5% down, while conventional loans can go as low as 3% for first-time buyers.
- Mortgage Insurance:FHA loans require mortgage insurance for the life of the loan, while conventional loans allow you to remove PMI after reaching 20% equity.
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Stay informed about the latest mortgage rates and make confident financial decisions. Compare today’s best mortgage options, including Fixed, Adjustable, FHA, and VA loans, all in one convenient place. Use our up-to-date mortgage rate tool to explore the current market trends and take the first step toward securing your dream home.
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Frequently Asked Questions
For qualified buyers, the down payment can be as low as 3% for a first-time homebuyer program and typically 5% for others. Conventional Loans: The Ultimate Guide
As low as 3% for qualified buyers, though 20% avoids PMI.
Yes, though requirements are stricter compared to primary residences.
By putting at least 20% down or refinancing once your equity grows.