A conventional loan is a mortgage that is not guaranteed or insured by any government agency such as FHA, VA, or USDA. Conventional loans are either conforming or non-conforming. Conforming mortgages are required to conform to underwriting guidelines and loan limits set by Fannie Mae or Freddie Mac, whereas Non-conforming mortgages have loan amounts higher than the loan limits set by Fannie Mae / Freddie Mac.
Conventional loans are great for many home buyers because of their faster home loan process, low costs, and added flexibility. When applying for a conventional loan, you must meet three initial requirements:
Another benefit to taking out a conventional loan is the flexibility they provide for different types of local properties. Eligible properties for conventional loans include single-family homes, condominiums, multi-unit properties, and planned unit developments.
So, if you have a decent credit score and available funds to make a down payment on an eligible property, it is likely you qualify for a conventional loan.
Most importantly: RESEARCH. Before taking out a loan, make sure to speak with a licensed Loan Officer about the perfect loan for you, and look into mortgage loan mistakes. Some of the most common mistakes people make when applying for a conventional loan is not checking their credit beforehand and ignoring the real expenses of homeownership.
Contact The Eric Vavere Team today for any further information or questions about conventional loans!
We had an aggressive pre-approval timeline and an aggressive loan contingency timeline, and Eric’s team met those milestones. Eric also gave great advice, and the rate we received was extremely competitive. Thank you for the great experience.Yip
Eric and his team were great to work with. They locked me in at a great rate and helped me achieve a pre-approval that made my offer more competitive. Eric even went out of his way to call the listing agent to solidify my offer when there were multiple competing offers. Without this, I am unsure if the seller would have accepted my offer. Thanks again, Eric!Tikker
Eric and his team were efficient, thorough, and very helpful throughout the whole process. As first-time buyers, we had many questions; Eric and Team were very informative and proactive when explaining each step. They were always quick to respond to communications and got us closed in 21 days. We would definitely use them again in the future.Radtke
Professionalism from top to bottom. Still can’t believe how smooth things went. One of the best teams to work with. Thank you so much Eric and team and look forward to doing continued business in the future.Michel
My wife and I recently purchased our first home. We worked closely with Eric Vavere on the loan. Eric was patient, knowledgeable, and supportive throughout the purchase . He took the time to understand our situation and advice us on the best approach to secure a loan. The actual loan process was smooth and clear. We were able to communicate with Eric and his team easily and we understood each step in the process thanks to his communication. We would definitely work with Eric and his team again!Madigan
When it came time to perform, they were lightning fast and were able to give us a competitive edge with fast loan and escrow times. Everyone that communicated with me from the team were very friendly. Highly recommend Eric and his team.Kim
Eric and team were incredible – quickly providing me confirmation of a loan, and coaching me through the process every step of the way. Super grateful to Eric and team for helping land me my dream homeDeyan