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 FICO 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 warrantable 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.
Is a conventional loan right for me?
Talk to one of our mortgage experts. They will review the available loan programs with you and help determine what is best based on your situation.