Conventional Loans
Flexible & Affordable Home Financing
Conventional loans are standard mortgage products offered by private lenders and not backed by the government. Conventional loans offer competitive interest rates and come in both fixed-rate and adjustable-rate options, providing flexible financing for many homebuyers.
Conventional Loan Requirements
1.
Credit Score
Borrowers need a minimum credit score of 620 or higher.
2.
Stable Income
You will need to verify
that you have a stable
and consistent income.
3.
Debt-To-Income Ratio
Borrowers must have
a manageable DTI ratio, typically not exceeding 43%.
4.
Down Payment
The down payment required is usually at least 3% to 5% of the home’s purchase price.
Conventional Loan Benefits
Lower Interest Rates
Conventional loans typically have lower interest rates compared to other loan types, especially if you have a strong credit history and a good credit score.
Flexibility
They offer fixed-rate and adjustable-rate repayment options, allowing borrowers to choose what works best for their financial situation.
Higher Loan Limits
Conventional loans often have higher maximum loan limits than government-backed loans, which can be advantageous if you’re looking to buy a more expensive home or refinance a larger mortgage amount.
