Conventional Mortgages

What is a Conventional Mortgage?

A conventional mortgage is a home loan that is not backed by a government agency. These loans follow guidelines set by Fannie Mae and Freddie Mac.

Types of Conventional Mortgages:
- Fixed-Rate Mortgages – The interest rate stays the same for the life of the loan.
- Adjustable-Rate Mortgages (ARMs) – The interest rate can change periodically.
Eligibility Requirements: Borrowers typically need a good credit score, stable income, and a reasonable debt-to-income ratio.
Private Mortgage Insurance (PMI): If your down payment is less than 20%, you may be required to pay PMI to protect the lender.
Popular Loan Option: Conventional loans are widely used, especially by buyers with strong credit and a larger down payment.