Conventional Loans
Purchase A Home With As Little as 3% Down.
Conventional loans are a popular choice for many homebuyers. These loans are not backed by the government, which means they're offered by private investors. To qualify for a conventional loan, you'll typically need a good credit score of 620 or higher, stable income, and a down payment of at least 3%. Understanding how much of a down payment you need can help you make better loan choices.
![pexels-rodnae-productions-8293778 pexels-rodnae-productions-8293778](https://www.valor.mortgage/hs-fs/hubfs/pexels-rodnae-productions-8293778.jpg?width=1920&height=1280&name=pexels-rodnae-productions-8293778.jpg)
Benefits of a Convenctional Loan
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Flexible Interest Rates
Conventional loans can offer more flexible interest rates, especially if you have a strong credit history.
![AdobeStock_604881667 AdobeStock_604881667](https://www.valor.mortgage/hs-fs/hubfs/AdobeStock_604881667.jpeg?width=2000&height=1333&name=AdobeStock_604881667.jpeg)
Low Down Payment
Conventional loans are available for homebuyers with as little as 3% down, making them more accessible.
![valentina-locatelli-P8bsrm8KbM0-unsplash valentina-locatelli-P8bsrm8KbM0-unsplash](https://www.valor.mortgage/hs-fs/hubfs/valentina-locatelli-P8bsrm8KbM0-unsplash.jpg?width=1920&height=1280&name=valentina-locatelli-P8bsrm8KbM0-unsplash.jpg)
Privately Funded
Because conventional loans aren't backed by a government agency, lenders have more freedom to offer flexible options.
![Attractive young couple moving house getting ready to unpack a cardboard carton of personal possessions below a big window Attractive young couple moving house getting ready to unpack a cardboard carton of personal possessions below a big window](https://www.valor.mortgage/hs-fs/hubfs/Attractive%20young%20couple%20moving%20house%20getting%20ready%20to%20unpack%20a%20cardboard%20carton%20of%20personal%20possessions%20below%20a%20big%20window.jpeg?width=1000&height=667&name=Attractive%20young%20couple%20moving%20house%20getting%20ready%20to%20unpack%20a%20cardboard%20carton%20of%20personal%20possessions%20below%20a%20big%20window.jpeg)
Higher Loan Limits
The lack of government involvement also means you'll usually be able to access more funds with a conventional loan.
![how-to-buy-a-home-with-no-money-down how-to-buy-a-home-with-no-money-down](https://www.valor.mortgage/hs-fs/hubfs/how-to-buy-a-home-with-no-money-down.jpg?width=1920&height=1442&name=how-to-buy-a-home-with-no-money-down.jpg)
Conventional Loan Requirements.
In order to apply and qualify for a conventional loan in Tennessee, home buyers must have a:
- Minimum credit score of 620
- Minimum down payment of 0-5%
- Favorable Debt-to-income ratio
- Loan amount within local conforming loan limits
- Proof of stable employment and income
- Clean credit history (no recent bankruptcy or foreclosure)
![ChristopherArmantroutCircle ChristopherArmantroutCircle](https://www.valor.mortgage/hubfs/ChristopherArmantroutCircle.png)
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