Conventional Purchase Loan
Get Pre-Qualified NOW!!!
Are You Ready To Buy A Home?
Find Out Your eligibility TODAY...
Conventional purchase loans, not backed by a government entity, are a well-established route to homeownership. These loans demand higher credit scores and stable income, making them suitable for borrowers with solid financial standing. With conventional loans, you can often enjoy lower interest rates, diverse term options, and the potential to avoid private mortgage insurance with a 20% down payment. They can also accommodate a variety of property types, including vacation homes and investment properties. While these loans have stricter requirements, the benefits such as potential equity building and lower overall costs can be substantial. Discover the benefits of conventional purchase loans today and step confidently into homeownership.
Begin the home buying journey on the right foot by securing a clear mortgage plan. Having a solid financial strategy in place will ensure that your home search is guided by practical considerations, rather than emotions alone.
What Are Conventional Purchase Loans?
Conventional loans are privately funded mortgages that are not insured or guaranteed by government programs such as the FHA, VA, or USDA. They cater to borrowers with strong financial profiles and are a well-established choice for purchasing primary residences, vacation homes, or investment properties.
Key Features of Conventional Purchase Loans:
Competitive Interest Rates: Borrowers with higher credit scores can often secure lower interest rates, saving thousands over the life of the loan.
Flexible Loan Terms: Choose from a variety of terms, typically 15, 20, or 30 years, allowing you to tailor the loan to your financial goals.
Diverse Property Options: Conventional loans can be used for single-family homes, condos, vacation homes, and multi-unit investment properties.
No PMI with 20% Down: With a 20% down payment, borrowers can avoid the added cost of private mortgage insurance, reducing monthly payments.
Higher Loan Limits: Conventional loans often offer higher borrowing limits than government-backed loans, accommodating buyers in high-cost areas.
Stricter Requirements: These loans require higher credit scores, lower debt-to-income (DTI) ratios, and stable income, ensuring borrowers are financially capable.
Why Choose a Conventional Loan?
Conventional purchase loans are ideal for buyers who:
Have a strong credit score and stable income.
Are able to make a larger down payment, potentially reducing overall costs.
Want to avoid PMI.
Need financing for a second home or investment property.
Desire flexible loan terms to align with their financial strategy.
With lower interest rates, diverse loan options, and the ability to finance a range of property types, conventional loans empower borrowers to step confidently into homeownership.
Steps to Get Started
Get Pre-Approved:
Pre-approval helps you understand your budget, strengthens your position as a buyer, and allows you to act quickly in a competitive market.
Find the Right Property:
Begin your search for a home that meets your needs, whether it’s a primary residence, vacation property, or investment opportunity.
Finalize Your Loan:
Once you’ve chosen a property, complete the loan process, providing necessary documentation to secure your mortgage.
Close on Your New Home:
Finalize the purchase and step into homeownership with confidence.
Getting pre-approved for a home loan is the crucial first step in your home buying journey. Here's why:
Know your budget - Pre-approval gives you an idea of what you can afford, allowing you to make informed decisions when shopping for a home.
Be a competitive buyer - Having a pre-approval letter shows sellers that you're a serious and committed buyer, making you stand out in a crowded market.
Streamline the process - The pre-approval process helps you identify any potential roadblocks early on, allowing you to address them before you find the home of your dreams.
Negotiate with confidence - Knowing that you have financing secured gives you the confidence to negotiate the best terms and price for your new home.
Frequently Asked Questions (FAQs)
1. What is a conventional purchase loan?
A conventional purchase loan is a mortgage not insured by the government, typically offered by private lenders, banks, or credit unions. It is ideal for borrowers with solid credit and steady income.
2. What credit score do I need for a conventional loan?
Most lenders require a minimum credit score of 620 for a conventional loan, but a higher score (above 700) often qualifies for better interest rates and terms.
3. How much down payment is required?
Conventional loans typically require at least a 3% down payment for first-time buyers. However, a 20% down payment is preferred to avoid PMI.
4. What is private mortgage insurance (PMI)?
PMI is an additional cost required for conventional loans with a down payment of less than 20%. It protects the lender in case of default but can be avoided with a larger down payment.
5. Can I use a conventional loan for an investment property?
Yes, conventional loans can finance investment properties or vacation homes, making them versatile for various property types.
6. Are there income limits for conventional loans?
Unlike some government-backed loans, conventional loans typically do not have income limits. However, lenders evaluate income stability and debt-to-income ratios.
7. What are the benefits of avoiding PMI?
Avoiding PMI reduces your monthly payment, saving you money over the life of the loan. Additionally, it eliminates the need for an added insurance premium.
8. How do interest rates compare to government-backed loans?
Conventional loans often offer lower interest rates to borrowers with strong financial profiles compared to FHA or VA loans.
9. What is the maximum loan amount for a conventional loan?
Loan limits vary by location, with higher limits in high-cost areas. For 2023, the baseline limit for single-family homes is $726,200, though it may be higher in specific areas.
10. Can I refinance a conventional loan?
Yes, conventional loans can be refinanced to take advantage of lower interest rates, change loan terms, or access equity through a cash-out refinance.
Achieve Your Homeownership Goals with a Conventional Loan
Conventional purchase loans are a trusted and flexible choice for buyers ready to take the next step in their homeownership journey. Whether you’re buying your first home, investing in real estate, or upgrading your living situation, a conventional loan provides the competitive rates, terms, and flexibility you need.
Get Pre-Qualified NOW!
Discover your eligibility and start your path to homeownership today!
Contact Us
9920 Pacific Heights Blvd. Ste. 150
San Diego, Ca 92121
Kam Financial & Realty, Inc. is an Equal Housing Lender. We fully comply with the Equal Credit Opportunity Act (ECOA) and all other Federal regulations. All applicants applying for credit from Kam Financial & Realty, Inc. will never be discouraged on on the basis of race, color, religion, national origin, sex, military status ,marital status, age, or because you get public assistance. All information we request is voluntary, and will be kept confidential. For more information on the ECOA, please visit:
http://www.ftc.gov/bcp/conline/pubs/credit/ecoa.shtm
© Copyright 2025 | Kam Financial & Realty, Inc. | All rights reserved.
© Copyright 2025 | Kam Financial & Realty, Inc. | All rights reserved.