A&D MORTGAGE, LLC
Conventional loan is a mortgage loan that is not insured or guaranteed by a government agency. Instead, it is backed by private lenders, such as banks or financial institutions. Conventional loans in mortgage are often subject to certain guidelines and requirements set by the lender, as they bear the risk of the loan.
In contrast, government-backed loans have government support that reduces the risk for lenders. Such loans are insured by the Federal Housing Administration (FHA loans), the Department of Veterans Affairs (VA loans), or guaranteed by Fannie Mae or Freddie Mac. This backing allows borrowers to obtain loans with more lenient qualification criteria, lower down payment requirements, etc.
Conventional loans in mortgage typically have stricter requirements. These include higher credit scores, lower debt-to-income ratios, and larger down payments. However, they offer loan term flexibility, lower interest rates, and no mortgage insurance premiums.
It’s important to note that loan programs and requirements can vary. That’s why it’s advisable to consult with lenders or mortgage professionals to understand the specific terms and options available to you.
As a mortgage broker, your clients rely on your expertise to find them the best deals. Our Quick Pricer tool can be an invaluable asset in your quest to secure the most advantageous mortgage rates. Be sure to explore our Programs section for additional resources tailored to your needs. If you have specific scenarios in mind, don’t hesitate to request them; we’re here to assist you. And if you’re interested in joining forces to provide even more value to your clients, consider becoming a partner with us. Together, we can empower individuals and families to achieve their dreams of homeownership.
