Conventional Loans

Flexible Financing for All Borrowers

What Are Conventional Loans?

Conventional loans are one of the most common types of mortgages, offering flexible terms and competitive rates for homebuyers and homeowners looking to refinance. These loans are not backed by any government agency, such as the FHA or VA, and instead conform to guidelines set by Fannie Mae and Freddie Mac. With a range of options, conventional loans are ideal for borrowers with good credit and stable financial profiles.

Why Choose a Conventional Loan?

Conventional loans provide unmatched flexibility, making them suitable for a variety of financial situations. Whether you're purchasing your first home, upgrading to a larger property, or refinancing for better terms, conventional loans offer competitive rates and terms tailored to your needs.

Key Benefits of Conventional Loans

Low Down Payment Requirements: Qualified buyers can secure a home with as little as 3% down, while larger down payments (20% or more) eliminate the need for private mortgage insurance (PMI).
No Upfront Mortgage Insurance Fees: Unlike government-backed loans, conventional mortgages don’t require upfront insurance premiums, saving borrowers money at closing.
Flexible Loan Terms: Borrowers can choose fixed or adjustable-rate mortgages (ARMs) with terms ranging from 10 to 30 years.

How Do Conventional Loans Work?

Conventional loans are available in two primary categories: conforming and non-conforming.

Conforming Loans: These meet the loan limits set by Fannie Mae and Freddie Mac, which vary by location.
Non-Conforming Loans (Jumbo Loans): These are designed for borrowers purchasing higher-priced properties that exceed conforming loan limits.

Conventional loans may require private mortgage insurance (PMI) if the down payment is less than 20%, but PMI can typically be removed once 20% equity is reached.

Who Qualifies for a Conventional Loan?

Conventional loans are best suited for borrowers who meet the following criteria:

Credit Score: A minimum credit score of 620 is typically required, with better rates available for higher scores.
Debt-to-Income Ratio (DTI): Lenders typically prefer a DTI of 43% or lower.
Down Payment: A minimum of 3% down for first-time homebuyers or 5% for repeat buyers, with no PMI required for down payments of 20% or more.

When Should You Consider a Conventional Loan?

Conventional loans are a great fit if you:

Have a strong credit profile and want the best interest rates.
Can make a down payment of at least 3%.
Want flexibility in loan terms and repayment options.
Are purchasing a property that doesn’t meet the requirements of FHA, USDA, or VA loans.

Why Work With Us for Your Conventional Loan?

Our team of mortgage professionals specializes in finding the best conventional loan solutions for your unique situation. We offer competitive rates, expert guidance, and a smooth process from pre-approval to closing.

Take the First Step Toward Homeownership

Conventional loans offer flexible terms, competitive rates, and opportunities to build equity quickly. Contact us today to explore your options, get pre-approved, and start your journey to homeownership.

Thank you for choosing us. We are dedicated to helping you achieve your homeownership goals with personalized service and expert guidance. For more information or assistance, feel free to reach out to us anytime!