know all about
"Conventional Loan"

What is a Conventional Loan ?

Conventional loans are any type of mortgage loan that is not insured by a government entity as part of a specific program. This loans generally offer lower costs than other loan.

How the Conventional Loan Works ?

Conventional loan is a mortgage loan that get from a private non-government lender. Private lenders can set the loan terms, eligibility, interest rates, down payment & more.

Some conventional loans can be guaranteed by two government-sponsored enterprises, Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac).

Who is Eligible for Conventional Loan ?

Conventional loans are not for everyone. People with established credit and stellar credit reports who are on a solid financial footing usually qualify for mortgages.


 Required Credit Score for Conventional Loan

You'll generally need a credit score of at least 620 to qualify for a conventional loan, though a score that's above 740 will help you get the best rate. 

Limits for Conventional Loan

For 2023, the loan limit for single-family home is $726,200. However, Alaska, Hawaii and other high-cost areas have higher loan limits, ranging up to $1,089,300.

Interest Rates of Conventional Loan

It depends on some factors, including borrower’s financial profile, assets, size of down payment, terms of loan, its length, its size & whether interest rate is fixed or adjustable. 

Conventional Loan Down Payment

Minimum down payment for conventional loan can be as low as 3% of sales price. Down payment depends on several factors, including sales price & borrower's qualifications.



Conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage companies.