Conventional Loans

 

• A conventional loan is a mortgage option not insured by government agencies.
• It is offered by private lenders such as banks and mortgage companies.
• The loan requires a minimum credit score of 620, but other factors may require it to be higher.
• It also requires adherence to a debt-to-income ratio limit of 45%.
• Down payments for a conventional loan can be as low as 3%.
• Conventional loans are available as conforming or nonconforming loans. Conforming loans adhere to limits set by the Federal Housing Finance Agency