Home Loans

What is a home loan?

A new home loan, also known as a conventional mortgage, is a type of loan you get from a bank or a mortgage lender to buy a home. Unlike VA loans, which are specifically for veterans and military personnel, new home loans are available to anyone who meets the lender's qualifications.

What are the benefits of a

Conventional Loan?

Benefits:

  • Flexibility: New home loans offer a wide range of options in terms of loan terms, down payments, and interest rates, allowing borrowers to tailor the loan to their specific needs.

  • Potential Lower Costs: While new home loans may require a down payment, they sometimes offer competitive interest rates and terms, especially for borrowers with strong credit histories.

  • Variety of Loan Types: There are various types of new home loans available, including fixed-rate mortgages (where the interest rate stays the same for the entire loan term) and adjustable-rate mortgages (where the interest rate can change over time).

  • No Special Eligibility Requirements: Unlike VA loans, which are reserved for specific groups, new home loans are open to anyone who meets the lender's criteria, regardless of military service or status

Who can use a

Conventional Loan?

Who Can Use It?:

  • Anyone Who Qualifies: Generally, to qualify for a new home loan, you need to have a stable income, a good credit history, and a reasonable debt-to-income ratio. While specific requirements may vary depending on the lender and the type of loan, new home loans are accessible to a wide range of borrowers.

How does a

Conventional Loan work?

How Does It Work?:

  • You apply for a new home loan through a bank or mortgage lender.

  • The lender evaluates your financial situation, including your income, credit history, and debts, to determine how much they're willing to lend you and at what interest rate.

  • If approved, you use the loan to purchase a home, and then you make regular monthly payments to the lender, which include both principal (the amount you borrowed) and interest (the cost of borrowing the money).

Things to consider with a

Conventional Loan.

  • Down Payment: Depending on the loan type and your financial situation, you may need to make a down payment, typically ranging from 3% to 20% of the home's purchase price.

  • Closing Costs: You'll also need to pay closing costs, which include fees for services like appraisals, title searches, and loan origination.

  • Private Mortgage Insurance (PMI): If you put down less than 20% on a conventional loan, you may be required to pay PMI until you reach a certain level of equity in the home.