Get a Conventional Loan

What is a Conventional Loan?

A conventional loan is a type of mortgage that is not insured or guaranteed by the government. Unlike government-backed loans such as FHA, VA, and USDA loans, conventional loans are originated and serviced by private lenders, such as banks, credit unions, and mortgage companies.

Conventional loans come in different forms, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), and jumbo loans. These loans typically require a higher credit score and a lower debt-to-income ratio compared to government-backed loans. Borrowers are also required to make a down payment, with a typical minimum down payment of 3-20% of the purchase price.

Conventional loans offer several advantages, including the ability to finance a wide range of properties, including primary residences, second homes, and investment properties. Conventional loans also offer more flexibility and customization in terms of loan duration and payment options. Additionally, conventional loans don't require mortgage insurance if the borrower puts down at least 20% of the purchase price.

However, conventional loans also have some potential downsides, including higher interest rates and stricter credit requirements compared to government-backed loans. Borrowers may also need to pay for private mortgage insurance if they make a down payment of less than 20%, which can increase the overall cost of the loan.

Overall, conventional loans can be a good option for borrowers with strong credit and financial stability who want flexibility and customization in their mortgage. However, it's important to shop around and compare rates and terms from multiple lenders to find the best loan for your needs.

Put your mortgage to work for you

Homebuyers often start by requesting a quote for their interest rate or beginning an application with a lender. By sharing basic information about your potential purchase, we’ll work with you to pull your credit report and discuss your finances, as well the potential value of the house you’re interested in purchasing.

As we move through the process we’ll arrange for an appraisal of the house to determine its value. We’ll also discuss the terms you qualify for and your options, as well as request various documentation for the underwriting process to make sure the loan begins on a solid foundation.

We’re with you through each step, leading to closing where we’ll finalize your affordable loan when you’re ready to purchase.

If you have questions about these requirements, we’re here to help. In most cases it’s best to have a credit score of 620 or higher. With higher credit scores often comes better interest rates. Through underwriting evaluation, you’ll need documentation of consistent income with a Debt-to-Income ratio at or below 50%. This ratio shows how much of your monthly income goes to paying your debt. Along with income information you need to share employment verification and history.

First-time homebuyers need a down payment of 3% or more. This minimum requirement goes up based on your income, if it’s a second home purchase, and other factors.

A down payment less than 20% requires paying Private Mortgage Insurance (PMI) premiums until you’ve paid 20% equity into the home, meaning you reach a Loan-to-Value ratio of 80%.