Conventional Loans

• Lower overall borrowing costs if you have good credit
• No upfront mortgage insurance fee (unlike FHA)
• PMI can be canceled once equity reaches 20%
• Flexible use: primary home, vacation home, or rental property
• Higher credit and income requirements
• Requires more documentation
• PMI adds to monthly cost if under 20% down
• Not ideal for those with low credit scores or limited savings

1. Conforming Loans – Meet standards of Fannie Mae and Freddie Mac
2. Non-Conforming Loans – Don’t meet these standards (e.g., Jumbo Loans)
3. Fixed-Rate Mortgages – Same interest rate for the life of the loan
4. Adjustable-Rate Mortgages (ARMs) – Rate changes after a fixed period