Las Vegas Conventional Home Mortgage

Conventional Home Loan

Know exactly what you can afford before you start searching for a home.

What is a conventional mortgage loan?

A conventional mortgage loan is a type of home loan that is not guaranteed or insured by a government agency. Unlike FHA or VA loans, which are backed by the Federal Housing Administration and the Department of Veterans Affairs, respectively, conventional loans are backed by private lenders, such as banks or mortgage companies.

Conventional loans can be either conforming or non-conforming. Conforming loans adhere to the guidelines set by Fannie Mae and Freddie Mac, which are government-sponsored enterprises that purchase mortgages from lenders and package them into securities that are sold to investors. Non-conforming loans, on the other hand, do not meet these guidelines and may have higher interest rates and stricter qualification requirements.

To qualify for a conventional mortgage loan, borrowers typically need a good credit score, a low debt-to-income ratio, and a down payment of at least 3% (although a down payment of 20% or more is generally recommended to avoid paying private mortgage insurance). The interest rate on a conventional loan will depend on a number of factors, including the borrower’s credit score, the loan amount, and the loan term.

One advantage of a conventional mortgage loan is that it can be more flexible than other types of loans. For example, borrowers may be able to choose from a variety of loan terms, ranging from 10 to 30 years, and may be able to choose between fixed-rate and adjustable-rate mortgages. Additionally, conventional loans may be used to finance a variety of properties, including primary residences, second homes, and investment properties.

Overall, conventional mortgage loans can be a good option for borrowers who have good credit, a stable income, and a down payment, and who want the flexibility to choose from a variety of loan terms and property types.

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