Conventional Loans

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Ready to embark on the exciting journey of homeownership? A Conventional Loan might be the right choice for you. In this guide, we will explore the benefits of Conventional Loans, compare them to other loan programs, and provide examples of how borrowers may use these loans to fulfill their homeownership dreams.

What is a Conventional Loan?

A Conventional Loan is a mortgage loan that is not backed or guaranteed by government agencies, like the Federal Housing Administration. These loans are offered by private lenders, such as banks, and follow Fannie Mae and Freddie Mac guidelines. 

In Comparison to Other Loan Programs, Conventional Loans offers borrowers wide ranges of benefits. Some of the benefits include:

• Flexibility: for various loan purposes, such as primary residences, second homes, and investment properties. 
• Down Payment Options: are also flexible, depending on the lender. Traditionally, Conventional Loans required a large Down Payment, however, eligible borrowers can put down as little as 3%. 
• No Mortgage Insurance: required if borrowers are able to make a Down Payment of 20% or more, resulting in lower monthly payments. 
• Various Loan Term Options: typically ranging from 10 to 30 years, allowing borrowers to choose a repayment plan that best suits their financial goals and circumstances. 

Conventional Loans may provide borrowers with the flexibility and freedom for homeownership goals with Down Payment options and versatile loan terms. These loans remain a popular choice for borrowers.