Get OREC Conventional Loan 2009-2024

Loan terms: Conventional loans are typically repaid over a 30-year term, but it's possible to qualify for a 15- or 20-year conventional mortgage loan. Interest rates: You can get a fixed-rate loan or an adjustable-rate loan. Your interest rate will largely depend on your credit score and overall credit history.

If you want the flexibility and freedom to pay taxes and insurance separately, a conventional mortgage is your only option. Conventional mortgages are usually fixed-rate products, meaning that once an interest rate is locked in, the borrower will keep that same payment for the life of the loan.

A conventional loan is one that is provided by a private lender such as a bank or credit union. With a conventional loan, you get the money you need up front, and pay back the lender over the course of your mortgage. Conventional home loans typically require a down payment and good finances to secure the best terms.

Conventional loans are home loans offered by private lenders without any direct government backing. In other words, unlike FHA loans, they aren't insured or guaranteed by a government agency. You need to have a higher credit score, lower debt-to-income (DTI) ratio and usually a slightly higher down payment to qualify.

“Conventional” just means that the loan is not part of a specific government program. Conventional loans typically cost less than FHA loans but can be more difficult to get.

Tougher credit score requirements than for government loan programs. Conventional loans often require a credit score of at least 620, which leaves out some homebuyers. Even if you qualify, you will likely pay a higher interest rate than if you had good credit.

Conventional Loan: Cons Higher credit-score threshold and lower debt-to-income ratio to meet than with FHA loan. PMI insurance with < 20% down payment. Meeting strict eligibility requirements overall.

Conventional mortgage down payment Conventional loans require as little as 3% down (this is even lower than FHA loans). For down payments lower than 20% though, private mortgage insurance (PMI) is required. (PMI can be removed after 20% equity is earned in the home.)