Conventional Loans

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Conventional Loan 101 in North Carolina, South Carolina, and Virginia

Traditional financing typically has stricter borrower underwriting criteria, but more lenient property underwriting criteria. As a result, interest rates on conventional loans are generally higher compared to government loans. However, depending on the loan-to-value ratio, conventional loans may or may not require mortgage insurance. The possibility of avoiding mortgage insurance or having it drop off after a specific period makes this loan option appealing to borrowers. Additionally, conventional loans offer higher loan limits, allowing customers to potentially qualify for a larger loan amount than what is typically allowed with government loans (excluding VA loans).


Are you looking for a home loan in North Carolina, South Carolina, and Virginia?

Home Lending Pros offers conventional loans for homebuyers through the North Carolina, South Carolina, and Virginia market areas.

Our conventional loan programs are designed to fit a variety of needs, from first-time homebuyers to experienced property owners. We can help you to purchase a primary residence, vacation home, or rental property and provide the financial assistance you need to make it happen. We understand that your home is one of the biggest investments you will ever make. That’s why we are committed to providing you with an experience that is fast, stress-free, and tailored to your specific needs.

If you’re ready to take the next step toward buying a home, contact Home Lending Pros today. We look forward to helping you find the perfect loan for your situation.


What Are Conventional Loans?

Conventional loans are a type of mortgage loan that is not insured or guaranteed by the government. They are available through private lenders and can be used to purchase a home, refinance an existing loan, or even take out a line of credit. Conventional loans typically require a higher credit score and a larger down payment than government-backed loans, but they can offer more favorable terms. Additionally, conventional loans are not subject to the same income and property restrictions that are associated with government-backed loans. With conventional loans, borrowers can choose from a variety of loan types, including fixed-rate, adjustable-rate, and jumbo loans.

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Benefits of a Conventional Loan


Low down payment:

Conventional loans may require as little as 3% of the purchase price. And if the borrower puts at least 20% down, private mortgage insurance (PMI) is generally not required.


Flexible qualifying criteria:

Conventional loans may be easier to qualify for than other types of mortgage products, as the credit and income standards may be more liberal.


Competitive interest rates:

Conventional loans usually offer competitive interest rates, making them attractive for borrowers looking to save money on their mortgage payments.


Refinancing options:

Conventional loans can be refinanced if borrowers want to take advantage of lower interest rates or switch from an adjustable-rate mortgage to a fixed-rate mortgage.

Disadvantages of a Conventional Loan


More paperwork:

Conventional loans may require more paperwork than government-backed loans, such as additional financial statements and tax returns.



Private mortgage insurance is required for conventional loans if the borrower puts less than 20% down. This adds to the overall cost of the loan.


Higher credit score requirements:

Conventional loans generally require a higher credit score than government-backed loans, which can make them difficult to obtain for some borrowers.

Who Qualifies for a Conventional Home Loan?

Qualifying for a conventional home loan requires that you meet certain criteria. Generally, lenders will look for a good credit score (typically, a score of at least 620), a steady job history, and a debt-to-income ratio (DTI) of 43% or less. Additionally, you must have enough money saved for a down payment and closing costs.

To be approved for a conventional loan, you must provide proof of income, including two years of W-2s and tax returns. You must also provide two to four months of bank statements that show your assets and liabilities. Furthermore, lenders may require additional documentation, such as copies of car registrations and titles, proof of homeowner’s insurance, a copy of the purchase and sales agreement, and more.

How to Apply for a Conventional Loan in the Carolinas and Virginia

If you’re considering a conventional loan, Home Lending Pros can help. Our experienced team of loan officers and home loan advisors will work with you to find the best loan option for your situation and financial goals. We’ll take the time to answer all your questions and make sure you feel comfortable with the loan process. Contact us today to get started!

Begin the Application Process for a Conventional Loan