Conventional Loans
Conventional Mortgage Loans, Flexible Path to Homeownership
Conventional mortgages remain one of the most popular and reliable ways to purchase or refinance a home. Backed by Fannie Mae and Freddie Mac, these loans offer flexibility, competitive interest rates, and a wide range of options for both first-time buyers and experienced homeowners.
What Is a Conventional Mortgage?
A conventional mortgage is a home loan not insured or guaranteed by the federal government (unlike FHA, VA, or USDA loans). Instead, it follows the lending guidelines established by Fannie Mae and Freddie Mac. This makes conventional loans ideal for borrowers with good credit, stable income, and a solid down payment, providing greater flexibility and potentially lower long-term costs.
Key Benefits
- Lower Overall Costs– Avoid upfront mortgage insurance premiums common with government-backed loans.
- Flexible Down Payment Options – As low as 3% down for qualified borrowers.
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- No Upfront Funding Fees, unlike FHA or VA loans. Refinance or Pay Off Early and no prepayment penalties.
- Wide Range of Property Types, eligible for single-family homes, condos, townhouses, and even multi-unit investment properties.
- Better Long-term Savings with strong credit, you can secure some of the most competitive interest rates on the market.
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Typical Qualification Guidelines To Qualify for a Conventional Loan:
- Credit Score: 620+ (higher scores may qualify for better rates)​
- Down Payment: 3%–20% depending on your situation
- Debt-to-Income Ratio (DTI): Usually below 45%
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- Stable Income & Employment History: Typically a 2-year consistent work record
-Appraisal & Property Condition: Must meet Fannie Mae/Freddie Mac standards.
