Conventional Loan

Conventional Loan

A conventional loan is a type of mortgage that is not backed by any government agency, such as the Federal Housing Administration (FHA). These loans can feature either fixed or adjustable interest rates and typically require a down payment of 20% or more.

Since conventional loans lack government insurance, lenders assume a higher risk if the borrower is unable to repay the loan. As a result, homebuyers with lower credit scores may find it challenging to qualify for conventional loans, as lenders require more assurance that borrowers will not default on their mortgages.

For those who do not have a high credit score or cannot afford the substantial down payment associated with a conventional loan, FHA loans serve as a viable alternative. Because these loans are insured by a government agency, lenders can offer significantly lower down payment requirements and competitive interest rates, making homeownership more accessible for many borrowers.

One-Time Close Loan

The FHA One-Time Close Construction-to-Permanent Loan is a government-backed mortgage for one-unit stick-built homes, new manufactured homes, and modular homes.

Fixed Rate Mortgage

A fixed-rate mortgage has an interest rate that remains constant for the loan’s duration. This means your monthly payments won’t change, simplifying budgeting.

Lender

Your lender is the person or institution that gives you a mortgage loan to buy a home. You agree to make regular payments, plus interest, to repay the loan.

Credit History

Lenders review your credit history, which reflects your borrowing and payment habits, to gauge your likelihood of repaying a mortgage loan.

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