Conventional Home Loans

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What are Conventional Home Loans?

A conventional loan refers to a mortgage that is both originated and managed by a private financial institution, such as a bank, credit union, or mortgage company, specifically for real estate purchases. This category of loan offers a range of term options and is particularly beneficial for individuals who have a substantial down payment and a solid credit record. Unlike loans insured or guaranteed by government programs, conventional home loans are the most common type of home loan, relying on private backing rather than government support.

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Conventional Loan Requirements

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Minimum 620 Credit Score

A minimum credit score of 620 is required for Conventional Loans.

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3% Down Payment

Conventional loans require a down payment of at least 3%.

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Debt-To-Income Ratio ≤ 50%

You will need a Debt-To-Income ratio of no more than 50%.

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2% - 6% in Closing Costs

You'll need 2 - 6% of the total purchase price to cover closing costs.


Loan Benefits

Low Down Payment

You can move into your new home with a down payment as low as 3%.

Lower Monthly Payments

Monthly payments will be lower since they will be spread out over a longer period.

Flexible Loan Use

You can use a Conventional Loan to finance a primary home, second home, or investment property.

Fixed Interest Rates

Your interest rate will remain fixed for the entire life of the loan.

No Prepayment Penalties

There won't be any prepayment penalties if you're looking to pay off your mortgage early.

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"Made My House-Buying Experience Great"


I used Derek and his company when I purchased a condo on the Las Vegas strip. Everyone said that banks were giving a hard time for people looking for a loan for this building. However, Derek personally called me and walked me through the process, and assured me that I would be able to get the loan. Within 30 days, we not only got the loan but closed escrow. I highly recommend Derek and his team!

— Pathjoel from Las Vegas, NV 89158

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