Conventional Loans

What is a Conventional Loan?

Conventional loans, also called conventional mortgages, are the most common form of loans given out by private lenders. Unlike FHA, USDA, and VA loans, these are not loans that are backed by the government. That makes them a little riskier to the lender, making some of their requirements a little stricter. But, they also have their own set of benefits which is what makes them the most popular loan type for residential home buyers.


If you are interested in buying a home, vacation property, or investment property, then a conventional loan is a great option. Give Brian a call or text him at 706-973-7933 to see if a conventional loan is right for you and your situation.

Conventional Loan Requirements

Who Qualifies for a Conventional Loan?

To qualify for a conventional mortgage loan, you must be a legal adult with a reasonable credit history. While there are exceptions, you generally want to have a credit score at or above 680 to get a good rate, or 660 or above if you are a first-time homebuyer. You want to make sure you have a solid work history for the last two years, unless coming out of school, and that your monthly debts are not too much when compared to your monthly income. All of these things can be determined fairly easily over a quick phone call. If you have any questions, call/text Brian at 706-973-7933.

Benefits of a Conventional Mortgage

There’s more freedom with conventional mortgages than with government-backed loans. There are less restrictions on the type and condition of the property you want to purchase with a conventional loan. There are also options available, such as HomeReady and HomePossible loans, that allow for more flexibility and better interest rates if eligible. As for conventional down payments, there's a minimum of 5%, or as low as 3% if you are a first-time homebuyers. If you can afford 20% down, then doing so will exempt you from having to pay mortgage insurance.

Disadvantages of Conventional Mortgages

Because conventional mortgages mean more risk for a lender than government-backed loans, they have a few disadvantages. While a USDA and VA loan require no down payment, and FHA loans only require 3.5%, conventional loans have a minimum requirement of 5% for non-first-time homebuyers. If your down payment is under 10%, you can also only receive up to 3% of the purchase price in closing cost help from the seller, something for which government-backed loans give you more allowance.

Applying for a Conventional Mortgage Loan

To apply for a conventional loan, you can click here and fill out an application. Just do it to the best of your ability since Brian will go over it and give you a call to clarify details anyway. Then, you will be asked for the required documentation, which generally include your identification, proof of income, and proof of assets (such as bank statements). Brian will build get everything ready to be reviewed by the bank and have your application approved.

Get Help Applying for a Conventional Loan

Are you thinking about applying for a conventional mortgage loan or other home loan? Brian the Lender can help. He’ll answer any questions and can even get you started. Give Brian a call at 706-973-7933.

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