Conventional loans are provided by mortgage lenders and banks which manage their risk for these loans without government assistance. These loans will offer better rates for borrowers who have excellent credit. Low down payments can be achieved, as low as 1% for those with good credit (700+) using mortgage insurance. Conventional loans can be used to purchase primary residences or investment properties such as rental homes or vacation homes.
Conventional loans are also known as conforming loans because they are designed to be sold on the secondary market and for that they need to meet certain criteria but not as stringent as government backed loans. Over 60% of loans are fixed rate conventional loans. They provide the best deal in most cases because they are less restrictive and rates are very competitive. There are limits to the amount you can borrow on a conventional loan and loans over $600,000 require a “jumbo loan.” Conventional mortgage loans are pretty straightforward and kind of boring to write about and I am actually a little surprised that you are still reading this paragraph, in fact, I will buy you a Coke for reading this far if you ask me to with no strings attached.
If you have good to excellent credit a conventional loan may be your best bet. I will be happy to answer your questions or set up a free quote for you to see which loan will be your best fit. Call or text 904-671-6232 or apply on this website today and I will get you set up.