The Flexible Option
A conventional mortgage is a home loan that is not insured or guaranteed by the government. It is a type of loan that is available from a private lender, such as a bank or mortgage company.
Conventional mortgages often have stricter eligibility requirements than other types of home loans. Borrowers may be required to have a higher credit score, a larger down payment, and a lower debt-to-income ratio.
Conventional mortgages may offer fixed or adjustable interest rates. Fixed-rate mortgages have a constant interest rate for the life of the loan, while adjustable-rate mortgages have an initial fixed-rate period followed by adjustable rates.
Before committing to a conventional mortgage, borrowers should carefully consider their financial situation and make sure they are able to afford the loan. They should also shop around and compare offers from multiple lenders to find the best terms and rates.
- Higher credit score
- 3-5% down payment
- No loan limits
- PMI for low down payment
- Higher interest rates
- Strict property requirements
Provide an alternative to government-insured loans, with a wide variety of terms and options to suit the needs of individual borrowers.”
