Conventional Loan

Conventional Loans

Conventional loans are prevalent and highly utilized in the mortgage industry. They are often the perfect financing solution for many homebuyers.

What Kind Of Homebuyers Are Best Suited For A Conventional Loan?

Here are some of the critical characteristics of a Conventional loan mortgagee.

  • Higher credit score.
  • Currently has a lower debt to income ratio.
  • Can make a down payment of at least 3% or more.
  • Can prove stable income.

What Are The Advantages Of Conventional Loans?

Here are some of the critical characteristics of a Conventional loan mortgagee.

  • Can put down as little as 3% of the purchase price.
  • Private mortgage insurance (PMI) can be avoided by putting down 20%.
  • Conventional loan interest rates are typically better
    than comparable government-backed loans.
  • Flexibility – Can be used to purchase a primary or secondary residence.
  • Both fixed rate & adjustable rate terms are available for the life of the loan.
  • Can be used to refinance an existing loan or a new home purchase.

What Is A Conventional Conforming Loan?

A Conventional Conforming loan is typically a loan that is at or under the maximum county loan limit of the property. They are called conforming because they adhere to the guidelines set forth by Fannie Mae and Freddie Mac.

Is A Conventional Loan Right For Me?

For clients who meet the requirements of a Conventional loan, this type of home financing arrangement might be well suited to them. Because everyone’s financial circumstances are different, finding the right kind of mortgage for you is critical. Better Lending is happy to walk you through this crucial step of buying a home.

Contact us today to learn more about why so many homeowners have trusted us to be their lender of choice.

Closeup of two men shaking hand across a desk.
Loan Program
Conventional rates as low as 2.25% as low as 2.488%
FHA rates as low as 2.25% as low as 2.780%
VA rates as low as 2.25% as low as 2.410%

Contact Us Today

Contact us today to learn more about why so many homeowners have trusted us to be their lender of choice for Conventional loans.

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Related Resources

What Is the Difference Between Conforming and Nonconforming Loans?

By Better Lending | March 5, 2021

Conventional loans can be categorized in two ways: Conforming and Nonconforming Loans. There is a rather simple distinction between the two.

How Conventional Mortgages Differ From Others

By Better Lending | February 26, 2021

Conventional mortgages often meet down payment and income requirements set by Fannie Mae and Freddie Mac with a credit score of at least 620.

How to Keep Your Monthly Payments as Low as Possible

By Better Lending | February 19, 2021

Knowing how to keep your monthly payments as low as possible is important when trying to figure out your perfect monthly budget for housing.

How COVID Has Affected FHA Loan Requirements

By Better Lending | February 3, 2021

The COVID-19 pandemic has made some lenders make their requirements more stringent. See why…