Conventional Mortgage Loans: Empowering Homeownership
A conventional mortgage loan is a “conforming” loan that meets the requirements set by Fannie Mae or Freddie Mac. These government-sponsored enterprises purchase mortgages from lenders, enabling them to lend to more qualified buyers and promote homeownership.
Exploring Non-Conforming Options: Jumbo Loans
One common type of non-conforming mortgage is a jumbo loan. These loans exceed the conforming loan limits and offer flexibility for larger home purchases.
Understanding Conventional Loan Requirements
Conventional loans encompass different guidelines, but in general, they have stricter credit requirements compared to government-backed loans like FHA loans.
Down Payment Flexibility
Discover the varying down payment requirements based on your personal situation and the type of loan or property you’re getting. Whether you’re a first-time homebuyer or purchasing a second home, we have options to suit your needs.
Private Mortgage Insurance (PMI) Explained
Learn about PMI and how it applies to down payments below 20%. Explore different payment options and discover when you can request the removal of PMI.
Other Requirements to Consider
Explore the credit score, debt-to-income ratio (DTI), and loan size requirements for conventional loans. We’ll guide you through the process to ensure a smooth application.
Find Your Ideal Conventional Loan
At Capital New York Home Advantage, we offer a range of conventional mortgage loans to help you achieve homeownership. Our team is here to provide guidance and support throughout the process. Contact us today to explore your options and discover the path to your dream home.
How Is a Conventional Mortgage Different Than Other Loan Types?
Conventional loans are available to anyone who meets the requirements, while VA loans are exclusive to veterans, active-duty servicemembers, and their surviving spouses. VA loans offer unique benefits such as no down payment requirement and no mortgage insurance. However, VA loans have restrictions on using them for second homes, and a funding fee may apply.
Conventional Loan FAQs
Expand your understanding of conventional loans with answers to common questions:
The Bottom Line
Conventional loans often provide lower costs compared to other loan types. If you meet the credit score requirements and desire a down payment as low as 3%, a conventional mortgage may be the ideal solution for you.