Conventional Mortgage
What Is a Conventional Mortgage?
A conventional mortgage, unlike loans backed by the government, is a home loan not guaranteed by federal agencies such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). These loans are popular among borrowers due to their flexibility in terms and competitive rates.
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Who Offers Conventional Loans?
Most lenders offer conventional loans, making them one of the most accessible and common mortgage options available today. These mortgages adhere to guidelines set by Fannie Mae and Freddie Mac and stay within loan limits prescribed by the Federal Housing Finance Agency (FHFA). Requirements for a Conventional Mortgage
To qualify for a conventional mortgage, you generally need:
To qualify for a conventional mortgage, you generally need:
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Credit Score: A minimum of 620 is typically required, though a higher score of 740 or more will secure the best interest rates.
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Down Payment: As low as 3% of the home’s purchase price, which makes this a viable option for many first-time homebuyers. However, a larger down payment could result in more favorable loan terms, including lower interest rates.
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Is a Conventional Loan Right for You?
Conventional loans are ideal for borrowers with a strong credit history and the ability to make a down payment of at least 3%. They offer a variety of benefits, including competitive interest rates and a range of payment period terms. If you are considering buying a home and have a good credit score and available down payment, a conventional mortgage could be the perfect fit for your financial needs.
Learn More Explore your home buying options with our comprehensive guide to conventional mortgages and discover how you could benefit from this popular financing choice. Whether you're a first-time buyer or looking to refinance, our expert advice will help you navigate the path to your dream home.