What is a Conventional loan?
A Conventional home loan can offer great rates and flexible qualifying guidelines. A Conventional loan is also known as a Conforming loan because it conforms to the standards set by Fannie Mae and Freddie Mac—which are two agencies that help standardize the mortgage industry. The maximum conforming loan limit for one-unit properties is $510,400 (or $765,600 in high-cost areas). If you need mortgage financing for more than that amount, you should look at Jumbo loan options.
Can I qualify for a Conventional home loan?
Conventional financing appeals to a wide demographic, although it is best suited for those with a good credit score. While you can still qualify with a lower score, there may be higher costs associated with your mortgage.
If you have good credit and money for a down payment, you can take advantage of some great options with a Conventional loan. Be sure to check with your Loan Officer about your specific situation.
How much is the down payment for a Conventional mortgage?
A Conventional loan can require as little as 3% down, making it a great option for those who do not want an FHA loan. While Conventional loans do require mortgage insurance if you are putting less than 20% down, you can cancel the mortgage insurance after your home equity reaches 20%. Even better, Conventional financing does not require Upfront mortgage insurance like an FHA.
If you're ready to start your home buying journey, speaking to a loan officer is a great place to start.
Get pre-qualified now and we'll review your current financial situation and credit score to help you find the best option for you.
A First-Timers Guide to Mortgages
Are you a first-time homebuyer considering a Conventional Loan? Then our First-Time Homebuyer Guide can help you through the entire mortgage process, from pre-approval to closing and beyond.
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