Conventional loans are offered by lenders and aren’t insured by a government agency, giving lenders flexibility in setting terms.
01
Loan Variety
These loans come in different forms, such as fixed-rate and adjustable-rate mortgages, catering to different financial strategies.
02
Wide Property Eligibility
Can be used for various property types, including primary residences, second homes, and investment properties.
03
Flexible Down Payment Options
Conventional loans offer flexibility in down payment amounts, potentially avoiding the need for private mortgage insurance.
04
Conventional Loans Benefits
01.
Potentially Lower Costs
Competitive interest rates and no upfront mortgage insurance can result in lower overall costs.
02.
Higher Borrowing Limits
Conventional loans can offer higher loan amounts than government-backed loans, which is ideal for higher-value properties.
03.
Customizable Terms
Borrowers can choose from a variety of loan terms and structures to suit their financial situation.
04.
No Government Fees
Unlike FHA or VA loans, conventional loans don’t have additional government fees, reducing the cost burden on borrowers.
Loan Program Frequently Asked Questions
What makes a conventional loan different?
Conventional loans are not backed by the government. They usually require stronger credit and larger down payments but may offer lower long-term costs. This makes them a popular choice for well-qualified buyers.
Who can qualify for a conventional loan?
Borrowers with higher credit scores, stable income, and manageable debt are more likely to qualify. Conventional loans may also require a larger down payment, though some allow as little as 3 percent down.
Do conventional loans require an appraisal?
Yes, an appraisal is required to verify the property’s value. The home must meet market standards, and the value must support the loan amount. This step is necessary to finalize approval.
What documents are required for a conventional loan?
You will need income documents such as pay stubs, tax returns, and bank statements. Identification and proof of employment are also required. A larger down payment may require proof of asset funds.
How long does it take to close a conventional loan?
Conventional loans usually take 30 to 45 days to close. Timelines depend on how quickly you provide documents, the appraisal process, and how busy the lender is.
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