Conventional Loans
Conventional loans are the most popular type of mortgage. They are typically fixed in their terms and rates, offering stability and predictability for borrowers. These loans are not insured or guaranteed by the federal government, making them a preferred choice for borrowers with strong credit, a stable income, and the ability to make a down payment of at least 3-20%. This page will delve into the benefits, requirements, and various options available under conventional loans.
Requirements
- Min down payment 3%*
- PMI required over 80% LTV
- Max LTV on investment property 85%
- Min credit score 620
- Max loan amount $766,550
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What is the minimum down payment for a conventional loan?
Typically, the minimum down payment is 3-5% of the purchase price, but it can vary based on the lender's requirements and the borrower's credit profile.
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Are conventional loans only for first-time homebuyers?
No, conventional loans are available to all qualified buyers, not just first-time homebuyers.
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What credit score is needed for a conventional loan?
Generally, a credit score of 620 or higher is needed, but a higher score can secure better terms.
