Top 7 Benefits of Conventional Loans for Smart Homebuyers
Explore competitive rates, faster approvals, and flexible terms with our Conventional Loan programs—ideal for first-time buyers, refinancers, and investors.
8 Smart Benefits of Choosing a Conventional Loan
Unlock the power of conventional loans—ideal for first-time buyers, seasoned homeowners, and real estate investors seeking flexibility, lower costs, and fewer restrictions. Menage Mortgage offers expert guidance and competitive rates for conventional mortgage programs across Florida, Texas, and Georgia.
What Is a Conventional Mortgage?
A conventional home loan is a mortgage that is not backed by a government agency like FHA or VA. These loans follow guidelines set by Fannie Mae and Freddie Mac and come in two main types: conforming loans and non-conforming loans.
Borrowers with strong credit and steady income often prefer conventional loans due to lower long-term costs—especially when putting 20% or more down to avoid private mortgage insurance (PMI).
Conventional fixed-rate loans offer stability, while adjustable-rate options may provide initial savings for short-term goals. Learn about the types of conventional loans available to meet your needs.
Benefits of Conventional Loans
- Lower borrowing costs with competitive interest rates
- No upfront mortgage insurance premium
- Flexible loan terms (10, 15, 20, or 30 years)
- Available for primary, secondary, or investment properties
- No income limits or geographic restrictions
- PMI can be removed once 20% equity is achieved
- Streamlined refinance options available
- More options for creditworthy borrowers
Conventional Loan Requirements
To qualify for a traditional loan, borrowers typically need:
- A credit score of 620 or higher
- Stable employment and income documentation
- A debt-to-income (DTI) ratio under 45%
- A down payment as low as 3% for eligible borrowers
- An appraisal meeting property and safety standards
Menage Mortgage works with top conventional lenders to help clients in Florida, Texas, and Georgia find the right fit.
Conforming vs Non-Conforming Loans
Conforming loans meet the loan limits and underwriting guidelines set by Fannie Mae and Freddie Mac. They typically offer better rates and easier qualification for buyers with good credit.
Non-conforming loans, such as jumbo mortgages, exceed those limits or have more flexible criteria. These loans serve buyers with unique income sources, credit profiles, or property types.
Is a Conventional Loan Right for You?
Conventional loans are ideal for:
- First-time homebuyers with strong credit
- Current homeowners upgrading or downsizing
- Investors purchasing rental properties
- Self-employed borrowers with qualifying documentation
With the right guidance, conventional loans provide flexibility and value. Let our team help you navigate your options.
Explore More Loan Programs
FHA Loans Jumbo Loans VA LoansFrequently Asked Questions
What is a conventional loan?
A conventional loan is a mortgage not insured by the government. It follows standards set by Fannie Mae and Freddie Mac.
Is a conventional loan good for first-time buyers?
Yes! Many first-time buyers qualify with as little as 3% down and benefit from reduced long-term costs with a conventional mortgage.
What’s the difference between conforming and non-conforming?
Conforming loans meet loan limits and guideline requirements. Non-conforming loans exceed those limits or have flexible criteria.
Get Pre-Approved for a Conventional Loan Today
Ready to move forward? Our mortgage specialists are here to help you explore your options, compare rates, and start your journey with confidence.
Start My Pre-Approval