Conventional Mortgage Loans

 

What is a conventional loan?

A conventional loan is any mortgage that is not guaranteed or insured by the federal government. Generally, this term refers to a loan that follows the guidelines of government-sponsored enterprises (i.e., Fannie Mae or Freddie Mac).

What credit score minimum is required for a conventional loan?

At least a 620 credit score is generally required to obtain a conventional loan approval.

How much money does a conventional loan require for the down payment?

Conventional home mortgage loans require the home buyer to invest at least 5% of the sales price in cash for the down payment and closing costs. If a buyer can put down at least 20% of the sales price, they will be able to avoid mortgage insurance.

What property types are allowed with conventional mortgages?

Conventional mortgage guidelines allow you to purchase warrant-able condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes, and investment properties.