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What is a Conventional Home Loan?


A Conventional Home loan is one that is not insured or guaranteed by the federal government. This particular loan complies with Fannie Mae and Freddie Mac guidelines and it may have a fixed or adjustable rate.


Why Choose a Conventional Loan?


Although most people believe that you must have a 20% down payment for a conventional loan there are other down payment options. California Mortgage Directs offers Conventional Mortgages with 3%, 5%, 10%, AND 15% down payments based on your credit score. Conventional loans do not require private mortgage insurance if you plan on borrowing less than 80% of the homes value which, in turn, reduces monthly expenses. Although credit score requirements vary by lender, generally, you need a minimum credit score of 620 to qualify for a conventional loan.