Conventional Loan

A conventional loan is a mortgage that is not insured or guaranteed by the federal government. They’re popular with borrowers who have good credit, a stable job and income, who can afford a down payment, and are financially stable overall.

On the other hand, government-backed loans have terms set by the federal government who then insures or guarantees the loan, thus protecting the lender in the event a borrower defaults on the mortgage.



What are the Benefits of a Conventional Loan?

  • They are simpler to apply and qualify for, require less paperwork, and are fewer rules and regulations to meet.
  • There are more options to choose from and the terms are more flexible and easier to tailor to your financial situation and goals.
  • They can be used for almost all types of properties, from single- and multi-family homes to condominiums and even manufactured homes.
  • If you have at least 20% to put down on a purchase, or at least 20% equity when refinancing, you are not required to pay mortgage insurance.


Myth: You will need a 20% down payment ready and available to qualify for a conventional loan.

 

Fact: Bydand has options with as little as a 3% down payment for this loan product. Don’t let the fear of a steep down payment scare you! That’s where our team comes in to help. Contact us today to speak with one of our incredibly helpful team members. They’ll help you understand your available options and explore what loan program and conditions would best fit your needs.