Conventional Loans

Overview

Conventional loans are the most commonly used mortgage products in the U.S. because they are not insured or guaranteed by a government agency. Instead, they typically adhere to guidelines set by government-sponsored enterprises like Fannie Mae and Freddie Mac.

Why an
Conventional Loan?

Conventional home loans may help you buy a home with a down payment ranging from 3% to 20%. Borrowers who cannot afford a 20% down payment may still qualify with private mortgage insurance (PMI). Conventional loans are ideal for those with good credit and can offer competitive interest rates.

For traditional borrowers
Tax returns required for approval for Self-Employed borrowers
3% to 20% down payments
Flexible loan options available
Terms of 15, 20, 30 years
Good Credit

Lynette Williams

NMLS#2351054

Branch Manager

Schedule a Phone Call With Me

323-990-7069
[email protected]

Apply Now

Who Qualifies?

Borrowers with stable employment and a good credit history.
Typically, a credit score of 620 or above is Needed
A debt-to-income (DTI) ratio generally under 43% (though some lenders may allow higher ratios under specific conditions up to 49%).
Down payment requirements can be as low as 3% for first-time homebuyers, but commonly 5% to 20% depending on your credit profile and the lender’s guidelines.

Key Advantages

Competitive Interest Rates: Borrowers with higher credit scores can lock in favourable rates.
No Upfront Mortgage Insurance: Unlike FHA loans, there is no upfront mortgage insurance premium (although private mortgage insurance (PMI) may apply if your down payment is under 20%).
Flexibility in Property Types: Conventional loans can be used for primary residences, secondary homes, or investment properties.

Lynette Williams

NMLS# 2351054

Branch Manager

323-990-7069

[email protected]

Apply Now

Example:

A homebuyer with a 700 credit score, a stable job, and a 10% down payment is likely to find a conventional loan that offers a good balance of interest rate and loan terms.