Conventional Home Loan
What is a Conventional Home Loan?
A conventional home loan isn’t backed by the federal government and it conforms to the requirements set forth by Fannie Mae and Freddie Mac.
Colorado borrowers are typically required to provide a down payment of at least 3% (first-time home buyers), but if borrowers decide to put at least 20% down, they won't have to pay for mortgage insurance.
Conventional loans are geared towards borrowers who can potentially make larger down payments, have a fairly secure financial standing, and are at a lower risk of defaulting on the loan.
Requirements for a Conventional Loan
Minimum Down Payment of 3%
Credit scores as low as 620
Mortgage Insurance is required if down payment is less than 20%
Conventional Loan Highlights
Relatively faster home loan processing
Generally better interest rates and loan terms compared to VA & FHA loans
Opportunity to reduce or avoid a Mortgage Insurance Premium
Loan limits vary by county - Denver County loan limit - $575,000*, El Paso County Loan Limit - $510,400*, Arapahoe County loan limit - $575,000* (Contact us for the Conventional Loan Limits in your County)
* As of January 2020
At Security First Financial, we’re dedicated to ensuring that each customer has a great experience. Our local loan originators have decades of combined experience in the mortgage industry and can help you find the right mortgage based on your needs. We are happy to answer any questions you may have along the way to make sure your mortgage loan process is a good one from start to finish. Contact Us Today To Get Started