The most common loan program may be a great fit for you.
Generally, conventional loans have better interest rates than non-conventional loans and can be an excellent option for those with a 20% down payment. However, even if the borrower does not have a 20% down payment, it is still possible to get a mortgage with a 5% down payment per Fannie Mae and Freddie Mac. Conventional loans allow the borrower to finance up to $417,000.
Conventional Loan Facts
If you have a decent credit score and money saved for a down payment this loan option is a good fit.
Variety of Home Purchase Types
This loan option can be used for primary, second, and investment homes.
Flexible Payment Terms
Conventional loans offer flexibility for monthly payment terms.
Requires Mortgage Insurance
Requires monthly mortgage insurance (unless the down payment in 20%)
Requires At Least 5% Down
A conventional loan requires a minimum of 5% for the down payment.
Low Closing Costs
Closing costs are generally low for the home buyer.
Fixed and Adjustable Rates Available
Both types of rates are available for conventional loan programs.
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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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