Conventional Loan

WHAT IS A CONVENTIONAL LOAN

A conventional loan is a mortgage not backed by a government agency, offering flexible terms, competitive rates, and lower long-term costs for qualified borrowers. It’s ideal for buyers with strong credit, steady income, and a solid financial profile who want more control over their mortgage structure.

LEARN HOW CONVENTIONAL LOANS WORK

Conventional loans are offered by private lenders and follow guidelines set by Fannie Mae and Freddie Mac. Borrowers can choose from fixed or adjustable rates, various loan terms, and down payment options starting as low as 3% for qualified buyers.

SEE CONVENTIONAL PAYMENT EXAMPLES

Conventional payments include principal, interest, and escrow for taxes and insurance. Borrowers who put down less than 20% typically pay private mortgage insurance (PMI), which can be removed once enough equity is built.

UNDERSTAND CONVENTIONAL LOAN RATES

Conventional loan rates are based on your credit score, loan amount, down payment, and market conditions. Borrowers with higher credit scores and stronger financial profiles usually receive the most competitive rates.

SEE HOW CONVENTIONAL RATES ARE SET

Lenders evaluate your credit history, income, debt-to-income ratio, and overall financial stability. Larger down payments and lower debt levels often result in better pricing and reduced mortgage insurance costs.

CONVENTIONAL CREDIT REQUIREMENTS

Conventional loans require stronger credit than FHA or VA loans. Lenders review your credit score, payment history, and financial behavior to determine eligibility and pricing.

CHECK CONVENTIONAL CREDIT REQUIREMENTS

CONVENTIONAL FEES AND COSTS

Conventional loans include standard closing costs such as appraisal, title, lender fees, and potential PMI. Borrowers with strong credit and larger down payments often pay less in long-term fees.

REVIEW CONVENTIONAL LOAN FEES

CONVENTIONAL VS. FHA LOANS

Conventional loans may offer lower long-term costs for borrowers with strong credit, while FHA loans are better for buyers needing flexible credit or lower down payments. Each option fits different financial situations.

COMPARE CONVENTIONAL VS. FHA

COMMON USES FOR CONVENTIONAL LOANS

Conventional loans are used for primary homes, second homes, and investment properties. They offer flexibility for buyers who want competitive pricing and customizable loan structures.

EXPLORE CONVENTIONAL LOAN USES

TAX CONSIDERATIONS

Mortgage interest and property taxes may be tax-deductible depending on your situation. PMI may also be deductible in certain tax years when allowed by law.

LEARN CONVENTIONAL TAX RULES

HOW TO APPLY FOR A CONVENTIONAL LOAN

You’ll provide financial documents, verify income, complete a home appraisal, and choose your loan structure. Conventional loans offer a streamlined process for qualified borrowers.

START YOUR CONVENTIONAL LOAN REQUEST