A conventional loan is a type of loan that is not insured or guaranteed by a government agency such as the Federal Housing Administration (FHA) or the U.S. Department of Veterans Affairs (VA). Conventional loans are typically used to purchase a home, refinance an existing mortgage, or to pay for other large expenses such as college tuition or renovations. Conventional loans typically require a higher credit score and a larger down payment than government-backed loans.
WHY GET A CONVENTIONAL LOAN?
Conventional loans usually offer lower interest rates than other loan types, which can help you save on your overall borrowing costs.
You may be able to secure a larger loan amount with a conventional loan, as the loan limits are typically higher than other loan types.
You may receive more flexible repayment terms with a conventional loan, as lenders may offer a variety of payment options.
Conventional loans may require less paperwork than other loan types, making them easier to obtain.
You may be able to get a conventional loan with a lower credit score than other loan types.
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