Not Goverment Backed Mortgage:
Unlike FHA, VA, or USDA loans, conventional loans have no federal insurance. Because lenders take on more risk, borrowers must meet stricter qualification standards.
Conforming vs Non Conforming:
Conforming loans meet loan limits and rules set by Fannie Mae/Freddie Mac.
Non-conforming loans (e.g., jumbo loans) exceed those limits or don’t follow GSE rules.
Higher Credit Score:
(often 620+; better rates with higher scores)
Stable Income and Employment
Lower debt-to-income (DTI) ratio:
(usually under ~45%, though exceptions exist)
Down payment of 3%–20%+:
depending on loan type and borrower profile
Occupancy Requirement:
Must be your primary residence (no vacation or investment properties).
Private Mortgage Insurance (PMI):
If you put down less than 20%, you typically must pay PMI.
However, PMI can be canceled once you reach 20% equity—something not always possible with government-backed loans.
Interest Rates:
Rates depend on credit score, down payment, loan size, and economic conditions. Borrowers with strong credit often get some of the best rates available.
Can remove PMI once you have 20% equity
Flexible loan terms (10, 15, 20, 30 years)
Use for primary residence, second home, or investment property
Potentially lower long-term cost than government-backed loans if credit is strong
Higher credit score and down-payment requirements
More strict on income/DTI eligibility
PMI adds cost for low-down-payment borrowers
Whether you’re buying your first home or upgrading to your next chapter, I’m here to guide you every step of the way.
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