Conventional Financing
Conventional loans are not backed by a government agency and are underwritten to guidelines set by conventional loan investors. They can offer competitive terms for well-qualified buyers and support down payments across a wide range, from low down payment options to 20% or more.
May be worth exploring when:
- You have solid credit and a stable, well-documented income.
- You have a down payment that lets you avoid or minimize mortgage insurance.
- You want the flexibility to remove mortgage insurance once you reach sufficient equity.
May not be the best fit when:
- Your credit history is limited or has recent challenges that FHA guidelines may accommodate more easily.
- You have very little available for a down payment and reserves.
Questions worth asking
- What down payment do I need to avoid or minimize mortgage insurance?
- How is my income documented and evaluated under conventional guidelines?