A Conventional Loan is a mortgage that’s not backed by the government. It typically follows the rules set by Fannie Mae or Freddie Mac.
There are two types:
-
Conforming loans – meet Fannie Mae/Freddie Mac guidelines
-
Non-conforming loans – don’t meet those guidelines, but are still considered conventional.
Conventional loans can be used to buy or refinance a primary home, second home, or investment property.
✅ Requirements
To qualify, lenders typically look at:
-
Credit Score: 620+ is ideal
-
Debt-to-Income Ratio: 28% for housing, 36% for total debts (can go higher with strong financials)
-
Income & Credit History: Stable income and a good payment track record
💰 Down Payment
You’ll usually need to put down 5% to 20% of the home’s price.
💸 Interest Rates
Your rate depends on your loan type and credit score.
Conventional loans come in two main types:
-
Fixed-rate: Same payment for the life of the loan
-
Adjustable-rate (ARM): Lower rate to start, but it can change over time
🏠 Eligible Properties
You can use a conventional loan to buy:
-
Single-family homes (1–4 units)
-
Condos, townhomes, modular, and some manufactured homes
-
Primary homes, vacation homes, and rental properties
🔄 After Bankruptcy?
You may qualify:
-
Chapter 7: After 4 years
-
Chapter 13: After 2 years of re-established credit
👉 Need help figuring out if a Conventional Loan is right for you? I’ll help you explore every option available.
📞 Call me (510)-542-7834 today!
Tina Bui – Your Trusted Mortgage Advisor
Call Tina (510) 542 7834 today!