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Conventional Loan
Ideal for buyers seeking a primary residence, vacation home, or investment property, conventional loans provide a straightforward path to homeownership for those who meet the lender's guidelines.
Quick Overview
Conventional loans are a widely used mortgage option for borrowers with solid credit and financial standing. Unlike government-backed loans, conventional loans are issued and managed by private lenders, offering more flexibility in terms of property types and loan amounts. While they typically require a higher credit score and down payment—ranging from 5% to 20%—they reward qualified borrowers with competitive interest rates and favorable loan terms.
Qualify for a Conventional Loan
To qualify for a Conventional Loan, you must meet these key requirements:
Credit Score
You’ll typically need a minimum credit score of 620 to qualify, though higher scores often result in better rates and terms. Lenders look for a strong credit history that demonstrates responsible financial behavior.
Income & Employment
Lenders will evaluate your income stability and employment history to ensure you can afford the monthly payments. This usually includes submitting W-2s, tax returns, and recent pay stubs, or proof of self-employment income.
Down Payment & Assets
Conventional loans generally require a down payment of at least 5%—though 20% is ideal to avoid private mortgage insurance (PMI). You’ll also need to show sufficient savings or liquid assets to cover the down payment, closing costs, and reserves if necessary.
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Ideal Borrowers for Conventional Loans
Is a Conventional Loan Right for You?
📉 Lower Mortgage Insurance
Conventional loans often allow you to avoid or cancel PMI once you reach 20% equity.
✅ Broad Property Options
Finance primary homes, second homes, or investment properties with flexible terms.
💰 Competitive Rates
Well-qualified buyers can access great rates with fewer fees and reduced loan costs.
Is a Conventional Loan Right for You?
A Good Fit If…
Not a Fit If…
Your credit score is 620+
Higher credit scores can help you qualify for lower interest rates and better terms.
Your credit score is under 620
Most conventional loans require a minimum score of 620 to qualify.
You’re putting down 10–20% or more
Stronger down payments reduce PMI and may allow you to remove it entirely.
You have less than 5% saved
While 3% options exist, FHA may offer more flexibility for low-down-payment buyers.
Your DTI is under 45%
Conventional loans typically favor lower debt-to-income ratios than FHA.
Your DTI is over 50%
Higher debt levels can be a barrier to approval unless you have strong compensating factors.
You’re buying a second home or rental
Conventional financing allows for vacation homes and investment properties.
You’ve had a recent bankruptcy
FHA and VA loans often allow shorter wait times after major credit events.
How it works
There are 6 steps to getting approved for a Conventional Loan
Step 01
Initial Consultation
Connect with a loan expert at B-Webster Loans to discuss your financial goals and determine if a conventional loan is the right fit.
Step 02
Pre-Qualification
Provide basic financial information so we can estimate how much you may be able to borrow and assess your credit standing.
Step 03
Document Collection
Submit key documents such as proof of income, employment history, bank statements, and credit information for review.
Step 04
Loan Application Submission:
We help you complete and submit a formal loan application to begin the underwriting process.
Step 05
Underwriting & Appraisal
Your application is reviewed in detail and an appraisal is conducted to determine the value of the property you wish to purchase.
Step 06
Loan Approval & Closing
Once approved, we finalize your loan terms and guide you through closing, where you’ll sign the final documents and receive the keys to your new home.
What client say about us
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Lorem Ipsum is simply dummy text of the printing
and typesetting industry. Lorem Ipsum has been
he industry's standard dummy text ever since the
1500s, when an unknown printer took a galley of
type and scrambled.
Darcel Ballentine
Barone LLC.
Conventional Loan FAQ's
We understand that conventional loans can come with a variety of questions, from credit score requirements to down payment expectations. This FAQ section is designed to provide clear, concise answers to the most common inquiries, so you can move forward with confidence and clarity on your path to homeownership.
What is a conventional loan?
A conventional loan is a type of mortgage not backed by the government, typically offered through private lenders.
How much is the down payment for a conventional loan?
Most conventional loans require a down payment between 5% and 20%, although some programs may allow for as little as 3% down for qualified borrowers.
What credit score do I need to qualify?
Generally, a credit score of at least 620 is required for a conventional loan, but higher scores can help you secure better interest rates and terms.
Are conventional loans only for first-time buyers?
No, conventional loans are available to both first-time and repeat homebuyers, as well as for refinancing existing mortgages.
Do I need mortgage insurance with a conventional loan?
If your down payment is less than 20%, you’ll typically need private mortgage insurance (PMI), which can be removed once you've built enough equity.
What types of properties can I buy with a conventional loan?
Conventional loans can be used for a variety of property types, including single-family homes, condos, multi-unit properties, and even second homes or investment properties.
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