Stephaine is back to talk about Conventional Mortages   A conventional mortgage is a type of home loan that isn't backed by the government (unlike FHA, VA, or USDA loans). Instead, it's offered by private lenders such as banks, credit unions, or mortgage companies and usually follows guidelines set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that help standardize mortgage lending.   Here's a breakdown:   ⸻   Key Features of a Conventional Mortgage • Down Payment: Often requires at least 3–5% down for first-time buyers, but many lenders prefer 20% down to avoid private mortgage insurance (PMI). • Credit Requirements: Borrowers typically need a higher credit score (usually 620 or above; the best rates go to 740+). • Loan Limits: There are maximum loan amounts, called conforming loan limits (in 2025, $766,550 in most areas, higher in some expensive markets). • PMI (Private Mortgage Insurance): If you put down less than 20%, you'll usually have to pay PMI until you reach 20% equity in your home. • Interest Rates: Rates depend heavily on credit score, debt-to-income ratio, and down payment size. Generally, borrowers with strong credit get better terms. • Flexibility: Can be used for primary residences, vacation homes, or investment properties.   ⸻   Pros • Lower overall borrowing costs if you have good credit. • PMI can be canceled once enough equity is built. • Greater variety of loan terms (15, 20, 30 years, fixed or adjustable). • Can be used for different types of properties (not limited to primary homes).   Cons • Harder to qualify if you have low credit or a small down payment. • Stricter debt-to-income requirements. • PMI adds cost if you can't put 20% down upfront.   House Keys is brought to you by  Mountain Retreat Realty Experts https://mtnretreatrealty.com   House Keys is produced by Birdman Media™ and supported by sponsors of the Birdman Media™ Community      

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