Conventional Loans in Florida

One of our many loan options available for borrowers is a conventional loan, often called a ‘conforming loan.”

What is a Conventional Loan?

This type of loan is the most common one and is not backed by government programs. They’re a lot more flexible compared to others and can be provided by credit unions, banks, and online originators.

The guidelines for this loan are set by the Federal Housing Finance Agency (FHFA) and the regulator Fannie Mae and Freddie Mac then oversee these terms.

The Three Types of Conventional Loans

Conforming loan

This loan will adhere to specific guidelines around loan size and credit set out by the Federal Housing Finance Agency (FHFA). The regulators Fannie Mae and Freddie Mac then oversee these terms.

Nonconforming loan

This is a type of conventional loan that does not meet the FHFA conforming loan criteria. For example, loans like jumbo loans that exceed the conforming loan maximum are considered nonconforming loans.

Non-qualified mortgages

If your finances don’t meet the borrowing requirements, sometimes the lender will still approve the loan, which is known as a non-qualified mortgage or non-QM loan.

Benefits of This Loan

• Lower down payment requirements
• Financing for flexible needs (primary residence, vacation home, or investment property)
• Lower closing costs
• Favorable interest rates
• No mortgage insurance is needed if a 20% down payment was made

Who Qualifies?

To meet the strict eligibility requirements of a conventional loan, you need to have the following:

• Credit score of at least 620 and above
• A Debt-to-Income (DTI) ratio of 45% or less
• Be able to make a down payment of at least 3% (if applicable)
• Do not exceed the conventional loan limits of your area

Apply For a Conventional Loan With Avanti Lending

Move into your dream home today with a conventional loan from Avanti Lending in Weston, Florida. Start the process today by contacting our team at (954) 440-6274.