Level Up Mortgage Lending | Conventional Loan

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.

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.

Level Up Mortgage Lending | Conventional Loan
Level Up Mortgage Lending | Conventional Loan

Conventional Loan Characteristics

1) Conventional loans are not backed by the government and are subject to the lender's guidelines and underwriting standards.

2) Typically require a higher down payment of 5% to 20% of the purchase price

3) Credit requirements are typically stricter than FHA loans, with lenders typically looking for a credit score of at least 620

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..

5) Conventional loans offer options for fixed or adjustable interest rates

6) Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums

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.

Level Up Mortgage Lending | Conventional Loan
Level Up Mortgage Lending | Conventional Loan

5) Conventional loans offer options for fixed or adjustable interest rates

6) Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums

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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