Private mortgage lenders like credit unions, banks, and other financial institutions are offering conventional bank loans.
This type of loan doesn’t have the benefits provided by the government in other types of loans, such as low-interest rates and low credit score requirements, no mortgage insurance, nor down payments.
The Loan Man is committed to providing a variety of financial solutions to residents that adapt to their needs through an easy and fast process.
How Conventional Bank Loans Work
There are two types of conventional bank loans; Conforming and non-conforming loans.
Conforming loans follow the rules set by the Federal National Mortgage Association. Lenders offer Non-conforming conventional loans with some flexibility.
You can get approved for a conforming conventional loan with a credit score of at least 620. However, some banks require a score of 660 and above. Usually, the interest rate depends on your credit score and your credit history. You will pay less interest throughout your loan if your credit is better than the average.
Why Get A Conventional Loan?
You might be asking about the benefits of a conventional bank loan; here are some benefits of getting this type of loan instead of Government-Backed Loans.
- Low-Interest Rates: You get a better interest rate in a conventional bank loan depending on your credit score. If your credit score is high, you can qualify for a lower interest rate.
- Higher Loan Limits: You can get a higher loan limit with a jumbo, conventional loan. This also depends on how high your credit score is.
- Flexibility: This is one of the main benefits of a conventional bank loan; since they don’t follow the rules from Government agencies, this way you can get flexible down payment options, and in some cases, you can get one even if you didn’t meet the criteria for government-insured loans.
Your Best Financial Solution
The Loan Man connects borrowers with high-class financing options in the market. Our team of experts has arranged thousands of mortgage financing for commercial properties. AT the Loan Man, we are ready to help you out and get the best financial solution for you.