Conventional Loans: Flexible Financing for Your Dream Home
- Home
- Conventional Loans
Conventional loans are a cornerstone of the mortgage industry, offering homebuyers competitive rates and flexible terms without the need for government backing. These loans are ideal for borrowers with good credit and stable income, providing an excellent opportunity to purchase or refinance a home. Whether you’re a first-time buyer or upgrading to your forever home, conventional loans can be tailored to meet your needs.
Key Features of Conventional Loans:
- Loan Limits: Up to $806,500 in 2025 for most areas, with higher limits in high-cost regions.
- Down Payment: As low as 3% for first-time homebuyers.
- Credit Score Requirement: Minimum credit score of 620.
- Private Mortgage Insurance (PMI): Required if the down payment is less than 20%; PMI can be removed once 20% equity is reached.
- Loan Terms: Choose between fixed-rate and adjustable-rate mortgages (ARMs) with terms ranging from 10 to 30 years.
Conventional loans are widely accepted by lenders and provide higher loan limits compared to government-backed options, making them suitable for a variety of property types and price ranges. If you’re looking for a straightforward, cost-effective way to secure financing, a conventional loan could be the perfect fit for your homeownership journey.