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Conventional Home Loans
A conventional mortgage is a home loan that is NOT backed by a government agency like FHA or VA. They often meet the down payment and income requirements set by Fannie Mae & Freddie Mac. They have stricter guidelines to qualify than compared to government-issued loans.
Benefits of a Conventional Loan:
Convention Loans are one of the best loan programs for a borrower with a high credit score. By a borrower having a higher credit score they receive additional benefits like no mortgage insurance, lower down payments, and more competitive pricing.
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Competitive pricing
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No prepayment penalty ever
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No mortgage insurance option
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Up to 45% debt to income ratio
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Allows for 3% seller paid closing costs
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