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Conventional Loans

About Conventional Home Loans

Conventional home loans are often misunderstood. Sometimes referred to as a “conforming loans”, conventional mortgages are a type that is not part of a government program, such as the U.S. Department of Agriculture (USDA), Federal Housing Administration (FHA), or U.S. Department of Veterans Affairs (VA). Conventional loans must “conform” to the underwriting requirements of Fannie Mae or Freddie Mac, which are often more stringent than their government program counter parts.

While underwriting requirements can be stricter, conventional home loans offer many great benefits.

 

CONVENTIONAL HOME LOAN BENEFITS

DOWN PAYMENT OPTIONS

Down Payment Options
Perhaps the biggest misunderstanding about conventional home loans surrounds the down payment. The fact is, you DO NOT need a 20% down payment for a conventional mortgage.

Can you make a 20% down payment? Sure, but conventional home loan down payment options actually start as low as 3% or 5%.

DOWN PAYMENT SOURCE

Down Payment Source
Another misconception about conventional mortgages is that the applicable down payment must come from your bank account.

However, your down payment can actually come from a gift by a family member, your retirement account(s), and funds secured by an asset (like an equity loan on property or a financial asset).

The Qualification Process Is

Just Call us at (844) 824-1735

FASTER LOAN PROCESSING

Faster Loan Processing
You may or may not think about processing speed while you’re dreaming of your new home, but once in the process of closing your home it will be important to you.

Because conventional home loans are not part of government program, they come with less paperwork hurdles and can closed much quicker in most cases.

LESS MORTGAGE INSURANCE

Less Mortgage
Putting 20% down on a conventional home loan will allow you to outright avoid mortgage insurance.

Like many people, putting 20% down on a home may not be a reality. Fortunately, the smaller down payment conventional mortgages often require less monthly mortgage insurance than government programs like FHA.

Leaders Credit Union is an
Equal Housing Lender

Forward Lending Solutions
c/o Leaders Credit Union
P.O. Box 10008
Jackson, TN 38308

(844) 824-1735
info@forwardlcu.com

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ABA Routing 284383886