Conventional (CONV) Loan
A conventional loan, often referred to as a CONV loan, is a type of mortgage that is not insured or guaranteed by any government agency like the FHA or VA. Instead, it’s backed solely by private lenders and follows the guidelines set by institutions such as Fannie Mae and Freddie Mac.
Conventional loans typically require a higher credit score and a larger down payment, usually around 20%. While they may have stricter eligibility criteria, they offer borrowers more flexibility in terms of property types and loan amounts.
One of the key benefits of a conventional loan is the potential for lower long-term costs, as borrowers can avoid mortgage insurance once they reach a certain level of equity in their home.
At Relentless Mortgage Group, we are dedicated to embracing a “Resilient” Approach to ensure every client finds the best loan options.
Requirements
Every conventional loan must adhere to specific fundamental criteria Fannie Mae and Freddie Mac established. Nonetheless, individual lenders can enforce more stringent benchmarks called “lender overlays.” It’s important to note that lenders are prohibited from enforcing criteria that could be classified as mortgage discrimination.
As a borrower, you should be ready to satisfy the following essential prerequisites for a conventional loan:
- Credit score of at least 620
- Debt-to-income ratio of no more than 45%
- Minimum down payment of 3%, or 20% with no PMI
- Property appraisal verifying the home’s value and condition
how can we help you?
At Relentless Mortgage we promise to provide complete transparency backed by “5 Star Service” from start to finish.
How do I say this! Ever feel that someone genuinely cares about your clients and your needs! Well with Joshua and his awesome Relentless team you feel that you are getting that top notch 5 star service! His team is clear in communication and is always ready to go the extra mile for their clients needs! We highly recommend anybody that ever has lending question to reach out to them! They will go the extra mile for you and your family!!!
