A conventional loan is a mortgage loan that is not insured or guaranteed by the government. Conventional loans typically offer the best terms for borrowers with good to excellent credit and sufficient down payment or home equity. Conventional loans can have adjustable or fixed rates.
CONVENTIONAL LOAN BENEFITS
Benefits of a Conventional Loan include:
- Most competitive rates and lower costs for a borrower with good to excellent credit.
- The borrower and lender can negotiate certain loan fees.
- More affordable payment options when home equity or down payment is less than 20% due to the ability of most Lenders to cover the cost of Mortgage Insurance.