Conventional Loan FAQs

We have the answers to the most common conventional loan questions.

Have questions about how to apply for a conventional loan?

We have answers. Please feel free to reach out directly to our loan officers if you have further questions. We look forward to hearing from you!
One of the most common types of loans that home buyers come across is the conventional loan. These loans aren’t backed by the government, like FHA and VA loans. Conventional loans follow the guidelines that Fannie Mae and Freddie Mac - two agencies responsible for standardizing mortgage lending - have set. But it’s lenders, such as banks, that are responsible for approving your conventional loan. Here's a blog that explains more about conventional loans. 

Among the documentation you may need for a conventional loan are:

  • Copy of driver’s license
  • Two years full tax returns - all pages and all schedules
  • Two most recent pay stubs with year-to-date pay
  • Two most recent asset statements - all pages with full transaction history
  • Copy of your mortgage statement if you currently own
You can purchase anything from single family homes, condos, town homes, investment properties to lofts and 2nd vacation homes. Anything that is considered standard housing for the area you are buying in.
Usually, unless you put 20% down. There are some conventional loan programs that don't require mortgage insurance. These are usually designed for low to moderate income families.
Credit score requirements for conventional loans vary from lender to lender, but they usually require higher income and credit scores than for an FHA loan. Typical credit score minimums are between 620 and 640.
The minimum down payment amount for a conventional loan is 3% for a fixed-rate mortgage, and 10% for an adjustable-rate mortgage. It is best to have as much saved up as possible for a conventional loan down payment as a down payment of 20% or more will eliminate the need to pay a monthly mortgage insurance premium.
Conventional loan limits are set by Fannie Mae and Freddie Mac and can vary by different areas in the U.S. To see what the loan limit is in your area, click here.
Conventional loans offer a number of advantages, as long as you have good credit and can put down a sizable deposit. You will most likely get a lower interest rate than an FHA loan, they usually require less paperwork, and you will not have to pay for mortgage insurance with at least a 20% down payment.
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