A Conventional loan is a fixed mortgage loan which is not insured or guaranteed by any agency of the state or federal government.
These fixed rate mortgage programs are available in 10, 15, 20, 25 and 30 year terms. These loans often provide quicker loan approvals than the FHA or VA loan programs.
- No Interest Rate Increases
- Faster Processing, Less Documentation
- Loan Amount – The loan amount for a conforming mortgage is generally limited to $424,100 for a single-family home, though limits may be higher in regions where home prices are higher.
- Down Payment – Most conventional loans will require at least 5 percent (and optimally 20 percent or more) as a down payment.
- Credit History – Conventional loans are a good choice for borrowers with excellent credit, which generally means a FICO score of 740 or higher. There are also established guidelines for income and other personal financial information.