A conventional loan is a mortgage that is not insured or guaranteed by a government agency, unlike government-backed loan programs such as FHA, VA, and USDA loans. Conventional loans can be conforming or non-conforming and are available for a variety of home financing needs.
With a range of financing options available, a conventional loan may be worth considering depending on your financial situation, property, and homeownership goals. Our team can help you compare your options and determine which loan program may be the right fit for you.
Conventional loans offer a variety of financing options and can provide flexibility based on a borrower’s individual needs. Depending on the loan program and borrower qualifications, conventional financing may offer different down payment options, loan terms, and property options.
Conventional loans may also allow borrowers to avoid or eventually remove private mortgage insurance (PMI), depending on the amount of equity in the home and other applicable requirements.
Conventional loans may offer down payment options as low as 3%, depending on the loan program and borrower qualifications. When a borrower puts less than 20% down, private mortgage insurance (PMI) may be required.
Eligibility for a conventional loan depends on several factors, including credit history, income, assets, debt-to-income ratio, and the property being financed. Requirements can vary depending on the loan program and individual circumstances.
Our team can review your financial situation and help determine which financing options may be available to you.
Yes, it may be possible to refinance an FHA loan into a conventional loan. Whether refinancing makes sense depends on factors such as your home equity, credit profile, current loan terms, and financial goals.
One reason homeowners may consider refinancing is the potential to eliminate FHA mortgage insurance, depending on their eligibility and the terms of the new conventional loan. Our team can help you compare your current loan with available refinancing options to determine whether refinancing may make sense for you.
Closing costs are expenses associated with obtaining a mortgage and completing your home purchase. Depending on the loan and transaction, options such as seller concessions, lender credits, gift funds, or down payment assistance programs may be available to help with eligible costs.
The amount you’ll need for closing can vary based on your loan, property, and individual circumstances. Our team can help you understand your estimated costs and review any options that may be available to you.
Conventional and FHA loans are two common financing options, but they have different features and eligibility requirements. Conventional loans are not government-backed, while FHA loans are insured by the Federal Housing Administration.
Differences may include down payment requirements, credit guidelines, mortgage insurance, loan limits, and property requirements. The right option depends on factors such as your financial situation, the property you're purchasing, and your homeownership goals.
Our team can help you compare conventional and FHA financing and determine which option may be a better fit for your needs.