WHAT IS A CONVENTIONAL LOAN?
A conventional loan is a mortgage that is not guaranteed or insured by any government agency such as FHA, VA, or USDA. Conventional loans are either conforming or non-conforming. Conforming mortgages are required to conform to underwriting guidelines and loan limits set by Fannie Mae or Freddie Mac, whereas non-conforming mortgages have loan amounts higher than the loan limits set by Fannie Mae / Freddie Mac.
WHO CAN TAKE ADVANTAGE OF CONVENTIONAL LOANS?
Conventional loans are great for many home buyers because of their faster home loan process, low costs, and added flexibility. When applying for a conventional loan, you must meet three initial requirements:
Another benefit to taking out a conventional loan is the flexibility they provide for different types of local properties. Eligible properties for conventional loans include single-family homes, condominiums, multi-unit properties, and planned unit developments.
So, if you have a decent credit score and available funds to make a down payment on an eligible property, it is likely you qualify for a conventional loan.
TIPS FOR TAKING OUT A CONVENTIONAL LOAN
Most importantly: RESEARCH. Before taking out a loan, make sure to speak with a licensed Loan Officer about the perfect loan for you, and look into mortgage loan mistakes. Some of the most common mistakes people make when applying for a conventional loan is not checking their credit beforehand and ignoring the real expenses of homeownership.
Contact Jill Reid today for any further information or questions about conventional loans!