Conventional Loans

Conventional mortgages, more accurately referred to as “conforming conventional”, are what most people think of regarding home loans. These loans are a great option for a primary residence, vacation home, or investment property. They are typically more suited for clients with some combination of strengthening factors in their scenario, such as higher credit scores, larger down payments, lower DTI, or higher asset reserves.

Contrary to popular belief, conventional loans do not require 20% down payment, although this would avoid the need for private mortgage insurance (PMI). First time homebuyers may potentially qualify with as little as 3% down, or 5% if they have owned real estate within the last 3 years. Conventional loan underwriting guidelines and qualification criteria are more restrictive than other loan types in some ways, such as credit and DTI, while being more flexible in other areas, such as property condition and certain income calculations. We recommend that you consult with an expert loan officer to discuss which loan progam is right for you.