Conventional Loan Program
Conventional loans are the most common type
of mortgage, not insured or guaranteed
by the federal government. These loans often require a
higher credit score and a larger
down payment than government-backed
loans, but they offer more flexibility in terms
of property type and use. Borrowers can
benefit from potentially lower interest
rates and the absence of mortgage insurance premiums if they put
down 20% or more of the home’s purchase price.
Scenarios and Potential Applicants:
- Individuals with strong credit scores looking for competitive interest rates.
- Buyers aiming for properties that might not qualify for government-backed loans, including investment properties and second homes.
- Homeowners interested in refinancing without the restrictions of government programs.
- Borrowers able to make a down payment of 20% or more to avoid private mortgage insurance (PMI).
Requirements:
- Minimum credit score typically around 620.
- Down payment ranging from 3% to 20% or more, depending on the lender and the borrower’s creditworthiness.
- Proof of income and employment.
