What is a Conventional Loan?
A conventional loan is a mortgage not backed by the government. It’s offered by private lenders like banks or credit unions. These loans work well for buyers with good credit and stable finances and offer flexible terms to suit your needs.
What Can You Buy with a Conventional Loan?
- Single-family homes
- Condos and townhomes
- Multi-family homes (up to 4 units)
Whether it’s your first home or an investment property, a conventional loan gives you plenty of options.
Qualification Requirements
To qualify for a conventional loan, you’ll generally need:
- Credit Score: At least 620 (higher scores get better rates).
- Down Payment: Typically 3%-20% of the home price.
- Debt-to-Income Ratio: No more than 43% of your gross monthly income.
- Stable Income: A steady income history for the last 2 years.
Why Choose a Conventional Loan?
- Competitive Rates: Better rates for buyers with strong credit.
- Flexibility: Choose from a variety of loan terms (15, 20, or 30 years).
- No PMI: Put down 20% or more to avoid private mortgage insurance (PMI) and reduce your monthly payments.
Ready to Buy Your Dream Home?
A conventional loan can help make your homeownership goals a reality. At Just Close Homes and Loans, our team is here to guide you every step of the way. Contact us today to learn more!