A conventional mortgage is not insured or guaranteed by a federal government loan program. The down payment, mortgage insurance, property type, and qualifying requirements depend on the specific loan.
Look at the whole proposal
Conventional financing can serve different purchase and refinance goals. Compare the loan term, rate structure, points, closing costs, mortgage insurance, and estimated monthly payment rather than assuming all conventional offers are alike.
Ask how mortgage insurance works
If private mortgage insurance is required, understand its cost and the conditions for cancellation or termination. Do not assume that paying down the loan or increasing the home’s value automatically removes it.
Be specific about the property
A primary residence, second home, investment property, condominium, and multiunit property can have different requirements. Discuss the property’s actual use and any association or project review before relying on an approval.
Questions worth asking
Do conventional loans always require 20% down?
No. Some eligible programs allow a smaller down payment. The available option, mortgage insurance, and full costs depend on your situation.
Are all conventional loans conforming?
No. Conforming loans meet applicable agency requirements and limits. Jumbo and other nonconforming loans can have different standards.
Educational content for review. Financing is subject to program availability, eligibility, underwriting, and approval. This is not a loan commitment or a rate quote.
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