Conventional loans

What is a conventional loan?

A conventional mortgage is a non-government loan that meets requirements set by the Federal Housing Finance Agency (FHFA) and meets the funding criteria of Freddie Mac and Fannie Mae. Conventional loans offer low interest rates to borrowers with excellent credit scores.

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Competitive rates and countless options

Homebuyers seeking a conventional loan typically enjoy the largest selection of loan options at the most competitive rates. Since risks and guidelines are well-defined, conventional loans are popular with both mortgage lenders and homebuyers. Most lenders will offer several Fannie Mae and Freddie Mac programs tailored to different homebuyer situations, which means you can shop for the most competitive rates and terms to maximize how much you can get from a conventional loan.

Benefits of a conventional loan:

  • Both fixed- and adjustable-rate options available
  • Financing up to 97% of the purchase price (up to 95% with conforming high-balance)

Who qualifies for a conventional loan and what are the limits?

Homebuyers who meet the following criteria may qualify:

  • Homebuyers with good credit (scores as low as 620) and a qualifying debt-to-income ratio
  • Homebuyers who do not need to borrow more than their county limits

Conventional loans also have limits to keep in mind:

  • Conventional loans have certain minimum down payment requirements
  • Conventional loan amounts may not exceed county loan limits (varies on a county-by-county level)

If you don’t qualify for a conventional loan:

Conventional loans are popular because they have such clearly defined guidelines. For anyone who doesn’t meet those guidelines, Guild has other options like FHA loans to help you qualify for the property you love.

All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.

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