Conventional Loan Serve you best if you have a great credit score and a stable Income and Assets. A Conventional Loan is a type of mortgage that is originated by a private financial institution like a bank, a credit union or a mortgage lender.
Conventional Mortgages are not backed by any government agency and are approved by the guidelines of the so-called government-backed private companies: Federal National Mortgage Association Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac).
This type of mortgage has several advantages like lower cost of financing, a potentially lower monthly PMI and a possibility to remove a Private Mortgage Insurance upon reaching a required amount of equity without having to refinance your mortgage, possibly higher loan limits than the government backed mortgages and less strict approval guidelines (on certain types of loans that permit reduced income and asset documentation).
The downsides of a Conventional Mortgage are that higher credit scores might be required for qualifying, as well as stricter approval guidelines might apply (lower so-called debt-to-income ratio).
It is advisable that you prepare in advance by consulting a Mortgage Advisor on the terms of financing that you qualify for based on your credit scores, income and assets.
Please refer to the types of Conventional Mortgages and respective qualification requirements elaborated in the Solutions section.