A conventional mortgage is a home loan that typically follows underwriting standards set by Fannie Mae and Freddie Mac, two government-sponsored enterprises that help maintain stability in the housing market. They can be used to finance primary residences, second homes, or investment properties. Because of their versatility, competitive interest rates, and broad eligibility criteria, they are among the most popular home financing options in the U.S.—especially for borrowers with strong credit and financial stability.
Conventional House Loan in NC, SC, VA, GA, FL
Options
- Fixed-Rate Mortgages: Offer consistent monthly payments and stability over 15-, 20-, or 30-year terms.
- Jumbo Loans: Designed for purchases of higher-value properties over the area’s conforming limit.
Benefits
- No Upfront Government Fees: There are no upfront mortgage insurance premiums or funding fees.
- Private Mortgage Insurance (PMI) Can Be Cancelled: If your down payment is less than 20%, you’ll likely need PMI, but that can be removed once your loan-to-value ratio (LTV) reaches 80%.
- More Favorable Terms for Strong Credit: Buyers with higher credit scores often qualify for lower interest rates, better terms, and reduced monthly payments.
- Flexibility: This financing can be used for various property types and purposes— starter homes, vacation properties and even investment properties.
Eligibility
To qualify, you’ll generally need:
- Down Payment: At least 5%, though some programs allow as little as 3% down for first-time buyers.
- Credit Score: A minimum of 620, though a score of 740 or higher typically secures the best rates.
- Debt-to-Income Ratio (DTI): Your total monthly debts (including your mortgage) should be no more than 50% of your gross monthly income.
- Eligible Property: The home must meet certain standards for safety, condition, and marketability.
A conventional house loan isn’t just a loan—it’s a smart tool for building long-term wealth. With competitive rates, flexible terms, and the ability to remove private mortgage insurance as equity grows, it rewards responsible money management and offers a clear path to financial stability.
Partner With Us!
Working with The Amy Bonis Mortgage Team means more than securing financing—it means having a strategic partner in your corner. We bring together analytical insight, creative problem-solving, and a people-first approach to make sure your mortgage plan aligns with your long-term financial goals. Contact us today to start building a strategy that works for you.
