Conventional Loans
When you’re exploring mortgage options, conventional loans are an excellent choice for borrowers with strong credit, steady income, and a solid financial profile.
While they have stricter qualifying requirements than government-backed loans, qualifying can reward you with competitive interest rates and flexible loan terms — making them a powerful tool for homebuyers seeking long-term stability.
Wide Range of Loan Options
Personalized Financial Guidance
What Is a Conventional Loan? 🏦
A conventional loan is a mortgage not insured or guaranteed by the federal government.
Unlike FHA or VA loans, which are backed by federal programs, conventional loans place the full risk on the lender if a borrower defaults.
As a result, these loans are best suited for borrowers with good to excellent credit and a proven ability to manage debt responsibly.
Loan Structure Options:
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Fixed-Rate Loans: Your interest rate remains the same for the entire loan term — typically 10, 15, 20, or 30 years— providing stability and predictable monthly payments.
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Adjustable-Rate Mortgages (ARMs): These start with a lower introductory rate for a set period, followed by periodic adjustments based on market conditions.
Requirements 📋
To qualify for a conventional loan, borrowers generally need to meet the following criteria:
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Strong credit score — typically 620 or higher to access competitive rates.
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Stable income and employment history.
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Down payment of around 20% of the purchase price for the best terms.
If you’re unable to make a full 20% down payment, you may still qualify — but you’ll likely pay Private Mortgage Insurance (PMI) until your loan-to-value ratio drops below 80%.
Benefits 🌟
Conventional loans offer many advantages, especially for well-qualified borrowers:
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🔹 Low interest rates for strong credit profiles.
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🔹 Flexible term options (fixed or adjustable).
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🔹 No upfront mortgage insurance premiums (unlike FHA loans).
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🔹 Fewer restrictions on property type and occupancy.
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🔹 Less paperwork compared to government-insured loans.
In short, a conventional mortgage is ideal for borrowers who want a stable, predictable, and customizable home loan without government program limitations.