EMPIRE WEST MORTGAGE LENDING
Conventional Loans
A conventional loan is a mortgage not insured or guaranteed by a federal government agency. These loans are offered by private lenders and typically follow the underwriting standards established by Fannie Mae and Freddie Mac, making them one of the most widely used financing options in the U.S. housing market.
Conventional loans are known for their competitive interest rates, flexible terms, and broad eligibility, making them a strong option for buyers with solid credit and a stable financial history.
Key Advantages of Conventional Loans
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Low Down Payment Options: Qualified borrowers may be eligible for down payments starting at 3%.
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Competitive Rates: Strong credit profiles often receive the most favorable interest rates.
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No Upfront Mortgage Insurance: Unlike government-backed loans, conventional loans do not require an upfront mortgage insurance premium.
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Removable PMI: Private Mortgage Insurance (PMI) is only required when the down payment is below 20%. It can be canceled once the borrower reaches sufficient equity.
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Flexible Use: Available for primary residences, second homes, and investment properties.
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Conforming Loan Limits: Loan amounts follow the annual limits set by the Federal Housing Finance Agency (FHFA).
Who Is a Good Candidate for a Conventional Loan?
This loan type is ideal for borrowers who:
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Have good to excellent credit
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Maintain steady income and employment history
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Prefer flexible mortgage terms
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Want the option to remove PMI without refinancing
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Are purchasing a primary home, a vacation home, or an investment property
Why Choose a Conventional Loan?
Conventional financing offers a strong combination of flexibility, stability, and long-term savings. Because mortgage insurance can be removed and interest rates reward higher credit scores, many borrowers find this loan type an excellent path toward building equity and achieving homeownership with confidence.