Conventional Loan Overview:
A Conventional Mortgage is one of the most popular loan options, offering homebuyers competitive rates, flexible term lengths, and the chance to avoid mortgage insurance with a 20% down payment. Ideal for those with solid credit, this loan type allows buyers to choose terms that fit their budget and long-term goals. Whether you’re a first-time homebuyer or looking to invest, a conventional loan could be your path to affordable homeownership.
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See if you Qualify For a Conventional Loan
These are some of the frequently asked questions we hear from folks who are shopping for their loans like you.
Many first-time homebuyers believe they need a 20% down payment to qualify for a conventional loan, but that’s actually a misconception. Conventional loans allow down payments as low as 3%—meaning you’d need only $9,000 for a $300,000 home or $6,000 for a $200,000 home.
Is an FHA loan or a conventional loan better? The answer largely depends on your unique financial situation. Typically, conventional loans are a great choice for those with solid credit and a higher homebuying budget. However, if your credit score falls below 620, an FHA-backed loan may be a better fit.
Qualifying for a conventional loan is often easier than many first-time homebuyers anticipate. You’ll generally need a minimum credit score of 620, along with two years of steady income and employment.
The primary drawback of a conventional loan is the down payment requirement, which can be substantial depending on the loan size and the borrower’s finances. Additionally, borrowers must demonstrate sufficient assets to cover the loan and maintain reserves for potential financial hardships.
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Our Mortgage Experts are available 24/7 to answer any questions you may have and help you get a faster approval
(407) 764-0064
We strive to deliver the highest levels of service to help you reach your goals. We thank you for your trust and support. From the first call to closing, our team is with you every step of the way!
Innovative Mortgage Services, Inc.
NMLS# 250769
MLO NMLS#1810783.
