Conventional Loans
Conventional loans often require a higher down payment compared to FHA loans, usually around 5% to 20% of the purchase price. The credit requirements for conventional loans are typically stricter, with lenders looking for a credit score of at least 620 or higher.
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However, borrowers with excellent credit may be able to secure a lower interest rate and better terms on a conventional loan. Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums.
Conventional Loan Characteristics
1) Conventional loans are not backed by the government and are subject to the lender's guidelines and underwriting standards.
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2) Typically require a higher down payment of 5% to 20% of the purchase price
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3) Credit requirements are typically stricter than FHA loans, with lenders typically looking for a credit score of at least 620
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4) Borrowers with excellent credit may be able to secure lower interest rates and better terms on a conventional loan compared to an FHA loan
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5) Conventional loans offer options for fixed or adjustable interest rates
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6) Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums
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7) Conventional loans do not require mortgage insurance if the borrower puts down at least 20% of the purchase price
8) Conventional loans offer options for refinancing, including cash-out refinancing and rate-and-term refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.
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5) Conventional loans offer options for fixed or adjustable interest rates
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6) Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums
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7) Conventional loans do not require mortgage insurance if the borrower puts down at least 20% of the purchase price
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8) Conventional loans offer options for refinancing, including cash-out refinancing and rate-and-term refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.
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Licensed to Do Business | NMLS# 1072781
Julian A Nazario | NMLS #1072781 | Barrett Financial Group, L.L.C. | NMLS #181106 | 275 E Rivulon Blvd, Suite 200, Gilbert, AZ 85297 | AZ 0904774 | CA 60DBO-46052 & 41DBO-148702 Licensed by Dept. of Financial Protection & Innovation under the California Residential Mortgage Lending Act.
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This is not a commitment to lend. All loans are subject to credit