Conventional Home Loans

Flexible financing for well-qualified buyers

Conventional mortgages are a popular choice for homebuyers who meet standard lending criteria and want a wide range of financing options. These loans are not backed by the federal government and typically follow guidelines set by Fannie Mae and Freddie Mac. At CTC Mortgage, we help borrowers in Florida, Georgia, North Carolina, and South Carolina secure competitive rates and terms for their home purchase or refinance.

What Is a Conventional Loan?

A conventional loan is a mortgage offered by private lenders that is not insured or guaranteed by a government agency. Most conventional loans conform to the underwriting standards of Fannie Mae and Freddie Mac, which set rules for credit, income, and property requirements. Because they are widely available, conventional loans can be used for primary residences, vacation homes, and even investment properties.

Benefits of Conventional Mortgages

Conventional loans offer several advantages for eligible borrowers, including:

• Lower mortgage insurance costs, or no PMI with 20% down
• Flexible repayment terms, including fixed and adjustable rates
• Use for a variety of property types: primary, secondary, or investment
• No upfront government mortgage insurance premiums
• Potential for lower overall costs compared to some government-backed loans

Conventional Loan Requirements

To qualify for a conventional loan, most lenders look for:

• Credit Score: Generally 620 or higher, though better credit often means better rates
• Down Payment: As low as 5% for many buyers, or 3% for certain first-time buyer programs; 20% eliminates PMI
• Debt-to-Income Ratio: Usually under 45%
• Loan Limits: Must be within conforming limits for your county

Conventional vs. FHA Loans

While both conventional and FHA loans can help buyers achieve homeownership, there are key differences. Conventional loans generally require higher credit scores but may offer lower overall costs in the long run. FHA loans allow for lower credit scores and smaller down payments but come with mortgage insurance premiums that can last the life of the loan. The right choice depends on your credit profile, available down payment, and long-term financial plans.

First-Time Buyers & Conventional Loans

First-time homebuyers can also take advantage of conventional loan programs, including options that require as little as 3% down. These programs are designed to make homeownership more accessible while still offering the benefits of a conventional mortgage. With proper guidance, many first-time buyers can qualify for competitive rates and favorable terms.