Conventional home loans oftentimes require less paperwork and verifications compared to other types of home loans. The also usually have lower costs associated with the loan.
Fewer Documents
Conventional loans usually require less documentation for verifying income, assets and gift funds. One major advantage is that conventional loans don’t require the gift funds being used towards closing to be sourced.
3% Down Payment
If you are a first-time buyer and have the credit scores to qualify for a conventional loan, they can purchase for as little as 3% down. If you have owned before, then the minimum down is 5%.
Higher Loan Limits
A conventional loan will allow a buyer to have a much higher maximum loan amount compared to an FHA or USDA loan. If you find a home that is priced above FHA loan limits, going conventional may be your best option.
