A Conventional Loan is a popular home financing option that isn’t backed by the government. These loans are offered by private lenders and follow guidelines set by Fannie Mae and Freddie Mac.
Conventional loans allow qualified buyers to put as little as 3%–5% down, making homeownership accessible without needing 20% upfront.
Borrowers can choose from fixed-rate or adjustable-rate options with predictable, stable monthly payments.
Once you reach 20% equity, you can request to remove Private Mortgage Insurance (PMI), which may lower your monthly payment.
Conventional loans can be used for
Borrowers with good credit benefit from lower rates, more flexibility, and reduced mortgage insurance costs.
Most lenders require a 620+ credit score for standard conventional loan approval.
Your DTI helps determine how much you can comfortably afford. Most borrowers qualify with DTIs up to 45%, and sometimes 50% with strong compensating factors.
Down payments typically start at 3%–5% for primary residences.
Thinking a Conventional Loan may be right for you?
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