A conventional mortgage is a type of home loan that is not insured or guaranteed by the government. Instead, it is issued by a lender and typically requires a higher credit score and a larger down payment than government-insured loans such as FHA or VA loans.

 

One of the main benefits of a conventional mortgage is that it often has a lower interest rate than government-insured loans. This can lead to significant savings over the life of the loan.

 

Another benefit of a conventional mortgage is that it typically has more flexible underwriting guidelines. This means that borrowers with a higher credit score and a larger down payment may be able to qualify for a larger loan amount or a better interest rate.

 

Conventional mortgages are available in a variety of terms, including fixed-rate and adjustable-rate mortgages. Fixed-rate mortgages have an interest rate that remains the same for the life of the loan, while adjustable-rate mortgages have an interest rate that can change over time.

 

To qualify for a conventional mortgage, borrowers typically need a credit score of at least 620 and a down payment of at least 5% of the purchase price. However, some lenders may have stricter guidelines and require a higher credit score or a larger down payment.

 

If you're considering a conventional mortgage, it's important to shop around and compare rates and terms from multiple lenders. This can help you find the best loan for your unique situation and ensure that you get the most favorable terms and lowest interest rate possible.

 

At Contemporary Mortgage Services, Inc., we are dedicated to helping our clients find the best mortgage for their unique situation. We offer a wide range of loan options, including conventional mortgages, and our team of experienced loan officers will work closely with you to find the best loan for your needs. Contact us today to learn more about conventional mortgages and how we can help you achieve your homeownership goals.