What are Conventional Loans?
Thinking about buying a home? You'll probably hear a lot about conventional loans. These are the most popular loans out there because they're not tied to a government program like FHA or VA loans. Instead, they're offered by private lenders and follow rules from Fannie Mae and Freddie Mac. This gives you more flexibility, often with fewer property restrictions and a quicker closing process.
What makes conventional loans a great choice?
You can put down as little as 3%
Unlike FHA, you won't have to pay for upfront mortgage insurance
You can cancel PMI once you have 20% equity in your home.
Obtain potentially lower interest rates with higher credit scores.
Take advantage of less stringent appraisal and property requirements compared to FHA, VA, or USDA loans.
