Conventional loans are the most requested loans from all borrowers and the favorite for Real Estate Agents. A Conventional mortgage loan is a “conforming” loan, which simply means that it meets the requirements for Fannie Mae or Freddie Mac (government-sponsored enterprises).
Is a conventional loan good?
A conventional loan is a great option if you have a solid credit score and little debt. You can avoid PMI by paying 20% of the loan upfront, which will lower your mortgage payments. If you’re unable to make a large payment upfront, conventional loans are available with a down payment as low as 3%.
Is it better to have a conventional loan or FHA?
A conventional loan is often better if you have good or excellent credit because your mortgage rate and PMI costs will go down. But an FHA loan can be perfect if your credit score is in the high-500s or low-600s. For lower-credit borrowers, FHA is often the cheaper option and in many case the only option available for Primary Residence purchase or refinance.
For more information about the types of Conventional loans, you can contact me by sending me a message through WhatsApp or through my Contact Page and I will gladly assist you with my best advice.