Conventional loans

 

A conventional loan is not issued or insured by a federal agency and is usually a 30-year fixed rate term that usually requires a 10 – 25% down payment and often allows for a better interest rate.file000243108855

  • Simply a loan that is not issued or insured by a federal agency
  • Usually a 30-year fixed rate term
  • Typically requires at least a 10 – 25% down payment, but can go as low as 3% for first-time home buyers.
  • Requiring larger down payments, conventional loans may offer better interest rates than non-conventional loans
  • Loans with less than a 20% down payment may require private mortgage insurance (PMI)