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 are required to conform to underwriting 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 can offer the best interest rate and lowest 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. They are typically considered to be the most common, stable, and safest type of loan.
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 the best 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!