What is a Conventional Loan?
A conventional loan is a mortgage that is not guaranteed or insured by any government agency such as FHA, VA, or USDA. Conventional loans are either conforming or non-conforming. Conforming mortgages must follow lending guidelines and loan limits set by Fannie Mae or Freddie Mac, whereas Non-conforming mortgages have loan amounts higher than the loan limits set by Fannie Mae / Freddie Mac.
Conventional loans generally offer low interest rate and fees, which can result in lower monthly payments. Most home buyers also choose a fixed-rate over an adjustable-rate mortgage to avoid any rising mortgage rates which makes budgeting much easier.
There are many benefits to a conventional loan such as faster home loan process, flexibility, and lower costs. Conventional loans can be a great option for home buyers who can meet these requirements:
- Be able to make a down payment
- Have a decent credit score (620 or above)
- Prove a stable income
If you meet these requirements, you may be able to qualify for a conventional loan.
Why should you choose Mortgage Possible?
Our team offers a 24-hour loan center for future home owners who don’t have time to apply for a loan during regular business hours. We offer quick loan approvals and provide our clients with suitable loan options for their needs and financial situations. Our team members are well-versed in conventional loan rules and requirements and will ensure that you are knowledgeable about our mortgage process prior to committing to a loan.
For any questions about the conventional loan process or any of our other home loan services, give our team at Mortgage Possible a call to speak to a local team member who can answer all of your home loan questions. Contact Us Today!