A financing option designed to meet the needs of today’s home buyer.
A conventional loan is an excellent match for a buyer with a decent credit score and some savings for a down payment. Most believe that a 20% down payment is required to finance a home with a conventional loan. While a 20% down payment is certainly helpful, it is not required. Conventional loans can be financed with as little as 3% down payment. This loan type is considered a “conforming loan” meaning it conforms to the guidelines created by government-sponsored agencies known as Fannie Mae and Freddie Mac.
Conventional Loan Facts
If you have a decent credit score and money saved for a down payment this loan option is a good fit.
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Frequently Asked Questions
1. Do I need to put down 20% on a conventional loan?
It’s a common misconception that a 20% down payment is necessary to purchase a home. There are a variety of loan options that allow for less than 20% down. Talk to your loan officer to find the best fit for your financial situation.
2. Do I have to have a perfect credit score in order to use a conventional loan?
A perfect credit score is not needed for a conventional loan. We typically recommend this loan for a buyer that has a credit score of 620 or higher. Always consult with your loan officer if a credit score is a concern. We can provide guidance.
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