Conventional

Conventional loans are mortgages not backed by a government agency, offering a wide range of options for borrowers with solid credit and a down payment. These loans typically require a higher credit score and a larger down payment compared to government-backed loans, but they often come without the upfront funding fees associated with FHA or USDA loans. Borrowers can avoid private mortgage insurance (PMI) with a down payment of 20% or more, reducing their monthly payments. Conventional loans adhere to the guidelines set by Fannie Mae and Freddie Mac, standardizing the loan process. They are ideal for individuals with strong financial profiles seeking flexibility and potentially lower long-term costs. With various term lengths and fixed or adjustable rates, conventional loans provide diverse options to suit different financial goals.