Question 1

What is a conventional mortgage and how is it different from government-backed loans?

Accepted Answer

A conventional mortgage is a loan that is not guaranteed by a government agency such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the United States Department of Agriculture (USDA). Unlike government-backed loans, conventional mortgages are not insured or backed by the government.

Question 2

What are the types of conventional mortgages available for Florida homebuyers?

Accepted Answer

There are two main types of conventional mortgages available for Florida homebuyers: fixed-rate conventional loans and adjustable-rate conventional loans.

Question 3

What are the benefits of choosing a conventional mortgage?

Accepted Answer

Conventional mortgages offer flexibility in loan terms, down payment options, and interest rates, and generally have higher loan limits than government-backed loans. Borrowers with a down payment of at least 20% can avoid mortgage insurance entirely. A Conventional mortgage also provide more refinancing options than government-backed loans.

Question 4

How do I qualify for a conventional mortgage?

Accepted Answer

To qualify for a conventional mortgage, borrowers must meet specific credit and income requirements. Lenders typically prefer borrowers with a higher credit score, a debt-to-income ratio below 43%, a larger down payment, and a stable employment history of at least two years.

Question 5

What are the steps involved in applying for a conventional mortgage?

Accepted Answer

The steps to apply for a conventional mortgage include evaluating your financial situation, contacting a mortgage broker, completing a mortgage application, submitting required documentation, receiving a loan estimate, and finalizing your mortgage.