Conventional Loan
Great for buyers with good credit!
A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. VA, FHA, and USDA loans are all examples of government-backed programs.
Conventional loan borrowers usually make higher down payments than borrowers using government-backed programs. However, conventional loans can offer some of the best terms if you have good credit and stable income.
Conventional Loan Benefits:
In general, conventional loans provide more flexibility with fewer restrictions on the borrower. They’re a great option if you qualify for them. Some of the biggest benefits include:
Private mortgage insurance (PMI) not required for the life of the loan
No PMI required with a 20% down payment
They can be used for a wide range of property types
Higher loan limits than some government-backed programs
Flexible loan terms with adjustable- and fixed-rate options