Stronger Credit Profile Preferred:

Conventional loans usually favor borrowers with higher credit scores. If your credit is in good shape, this loan type could be a solid match

Larger Down Payments Give You an Edge:

These loans often require a minimum of 5% down, and sometimes more. If you’re prepared to put more money down upfront, a conventional loan can open better financing options.

Potential for Lower Interest Rates:

A good credit history may qualify you for more favorable rates, reducing your overall borrowing costs over time.

PMI Can Be Avoided:

If you’re able to put at least 20% down, you can bypass private mortgage insurance (PMI), which is typically required with smaller down payments.

Higher Loan Limits Possible:

Compared to government-backed loans, conventional loans may offer higher borrowing limits—ideal for purchasing more expensive properties.

Flexible Terms and Structures:

Whether you’re looking for a fixed-rate or adjustable-rate mortgage, conventional loans come in many term options that can be tailored to your financial goals.

Works for Investment Properties

Conventional loans can be used for second homes or investment properties, making them a preferred route for real estate investors.