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Conventional Loans – Competitive Rates & Flexible Terms
Discover affordable home loans designed to meet your needs. Whether you’re buying your first home, upgrading, or refinancing, we offer low down payments, competitive rates, and customizable terms to help you achieve your homeownership goals—nationwide!
Simplify Your Homeownership Journey with Conventional Loans
Conventional loans are one of the most popular mortgage options, offering competitive interest rates, flexible terms, and affordable down payments. Whether you’re a first-time homebuyer, looking to upgrade, or refinancing, Wise Home Lending provides solutions tailored to your financial goals. With customizable loan programs and expert guidance, we make homeownership simple, affordable, and stress-free.
What Are Conventional Loans?
Conventional loans are privately funded mortgages that follow guidelines set by Fannie Mae and Freddie Mac. These loans are ideal for buyers with stable income and good credit, offering low down payment options and no private mortgage insurance (PMI) with a 20% down payment. Conventional loans provide flexibility for primary homes, second homes, and investment properties, making them one of the most versatile financing options available today.
Benefits of Conventional Loans
Conventional loans offer numerous advantages, making them a go-to option for many borrowers. They feature competitive interest rates, flexible loan terms ranging from 10 to 30 years, and higher borrowing limits compared to government-backed loans. Borrowers with strong credit scores can also secure lower costs and eliminate private mortgage insurance (PMI) with a 20% down payment.
Who Qualifies for Conventional Loans?
Conventional loans are ideal for borrowers with good credit and stable income. Most programs require a minimum credit score of 620, although higher scores can secure better rates and terms. Applicants typically need a debt-to-income ratio of 43% or lower, but exceptions may apply based on financial history. Income verification through tax returns, W-2s, and bank statements is required to demonstrate eligibility. These loans are flexible enough to support primary residences, vacation homes, and investment properties, making them a smart choice for many buyers.
Types of Conventional Loans
Wise Home Lending offers conventional loans with options to suit different goals. Fixed-rate mortgages provide predictable payments with a consistent interest rate for the entire loan term, making them ideal for long-term planning. Adjustable-rate mortgages (ARMs) offer lower initial rates, which can adjust later based on market conditions—perfect for short-term homeowners. Jumbo loans provide financing for high-value properties, exceeding standard loan limits. Cash-out refinancing is also available, allowing homeowners to tap into their equity to fund renovations, consolidate debt, or invest in other opportunities.
Why Choose Wise Home Lending for Your Conventional Loan?
At Wise Home Lending, we specialize in making the mortgage process simple and personalized. Our experienced team is committed to helping you find the right loan with competitive rates and customized options to fit your needs. We provide fast pre-approvals so you can shop for your home with confidence, and our nationwide programs ensure we can serve buyers and homeowners wherever they are. With step-by-step support from application to closing, we’re here to make homeownership as stress-free as possible.
Why Choose Wise Home Lending for Your First-Time Homebuyer Loan?
At Wise Home Lending, we understand that navigating the world of mortgages can be both complex and daunting. Located in the heart of Murray, UT, our unique approach combines years of industry experience with personalized advisory services to ensure you receive tailored solutions that cater to your financial needs. Our team is dedicated to guiding you through every step of the lending process, offering deep insights and professional advice that empower you to make informed decisions. Choose Wise Home Lending for a seamless mortgage experience driven by transparency, integrity, and an unwavering commitment to your financial wellbeing.
Ready to Take the First Step Toward Homeownership?
We’re here to help you make your first home purchase easy and affordable. Contact us today to explore your options, including First-Time Homebuyer Loans and Down Payment Assistance Programs.
Frequently Asked Questions About Conventional Loans
Conventional loans offer lower down payment options starting at 3%, making them accessible for a wide range of buyers. With a 20% down payment, private mortgage insurance (PMI) can be avoided, lowering your monthly costs. Minimum credit scores typically start at 620, but better credit can qualify you for lower rates. Fixed-rate mortgages provide consistent payments over the loan term, while adjustable-rate mortgages (ARMs) start with lower rates that can adjust over time. These loans are available for primary residences, second homes, and investment properties, making them versatile for different needs. If you’re unsure whether a conventional loan or another program is best, our team can walk you through the options and help you make the right choice.
What is a conventional loan?
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by the government. Instead, it is backed by private lenders and follows guidelines set by Fannie Mae and Freddie Mac. Conventional loans are one of the most flexible mortgage options, offering competitive rates, low down payments, and a variety of term lengths to fit your needs. They can be used for primary residences, second homes, and investment properties.
How much down payment is required for a conventional loan?
Conventional loans require a minimum down payment of 3% for first-time homebuyers and 5% for repeat buyers. However, if you’re able to make a 20% down payment, you can avoid private mortgage insurance (PMI), which lowers your monthly payments and overall loan costs. For those unable to make a larger down payment, PMI can typically be removed once 20% equity is reached.
What credit score do I need to qualify for a conventional loan?
Most conventional loans require a minimum credit score of 620. Borrowers with higher credit scores often receive better interest rates and terms. If your credit score is below 620, other mortgage options, such as FHA loans, may be a better fit, or we can guide you on steps to improve your score to qualify.
Can I refinance with a conventional loan?
Yes, conventional loans are commonly used for refinancing. You can refinance to secure a lower interest rate, shorten your loan term, or switch from an adjustable-rate mortgage to a fixed-rate mortgage. Cash-out refinancing is also available, allowing you to tap into your home’s equity for renovations, debt consolidation, or other financial needs.
What is the difference between a fixed-rate and adjustable-rate mortgage?
A fixed-rate mortgage offers a consistent interest rate and monthly payment throughout the life of the loan, making it ideal for borrowers who prefer stability. An adjustable-rate mortgage (ARM) starts with a lower initial interest rate for a set period, after which the rate may adjust annually based on market conditions. ARMs are a good choice for buyers planning to sell or refinance before the rate adjustment period begins.
Do conventional loans require private mortgage insurance (PMI)?
Private mortgage insurance (PMI) is required if you make a down payment of less than 20%. PMI protects the lender in case of default but can be removed once you’ve built at least 20% equity in your home. If you want to avoid PMI entirely, making a 20% down payment upfront eliminates this requirement.
Can I use a conventional loan for an investment property?
Yes, conventional loans are a popular option for financing investment properties. These loans provide flexibility for buyers looking to purchase rental properties or vacation homes. Investment property loans often require higher down payments and stricter credit requirements compared to loans for primary residences.
Are jumbo loans considered conventional loans?
Jumbo loans are a type of conventional loan designed for high-value properties that exceed conforming loan limits set by Fannie Mae and Freddie Mac. While they offer the same benefits as traditional conventional loans, jumbo loans may require larger down payments and higher credit scores due to the increased loan amount.
What documents are required to apply for a conventional loan?
To apply for a conventional loan, you’ll typically need proof of income, including W-2s, tax returns, and recent pay stubs. Bank statements are required to verify assets, along with identification such as a driver’s license or passport. A credit check and employment verification are also part of the approval process. We’ll guide you through the exact requirements to make sure everything is in place.
How long does it take to close on a conventional loan?
The average closing time for a conventional loan is 30 to 45 days. This timeline can vary depending on factors such as the property appraisal, document submission, and loan underwriting. We work quickly to keep the process on track and will keep you updated every step of the way.
Can I qualify for a conventional loan if I’m self-employed?
Yes, self-employed borrowers can qualify for a conventional loan. Instead of W-2s, you may need to provide additional documentation, such as tax returns, profit-and-loss statements, and bank statements to verify income. Our team can help you gather the necessary documents and guide you through the process.
Is a conventional loan better than an FHA loan?
Conventional loans are ideal for buyers with good credit and the ability to make a larger down payment. They offer lower long-term costs, especially for borrowers who can avoid PMI. FHA loans, on the other hand, are designed for buyers with lower credit scores or smaller down payments. We can help you compare options and choose the loan that best fits your financial goals.
What loan terms are available for conventional loans?
Conventional loans offer repayment terms of 15, 20, or 30 years. Shorter terms typically come with lower interest rates but higher monthly payments, while longer terms provide lower payments but higher total interest costs. We’ll work with you to find the right balance based on your budget and financial goals.
How do I apply for a conventional loan?
Getting started is easy. Simply contact Wise Home Lending to schedule a consultation or apply online. We’ll review your finances, help you choose the right loan, and guide you through each step of the process to make sure everything goes smoothly.
If you have additional questions or want to learn more about how a conventional loan can fit your needs, reach out today.