Conventional Loans in Kentucky & Beyond
Conventional home loans are an attractive option for homebuyers, from a fixed interest rate to no prepayment penalties. It also puts you on the fast track to getting the keys to your new home because there's typically less paperwork involved.
Is a Conventional Loan Right For You?
Who It’s For
Conventional loans are funded by private lenders, such as banks. They’re geared toward the average buyer who has a decent credit score and has saved up for a down payment.
Fixed Interest Rate
Your interest rate is fixed for the life of the loan, so you don’t have to worry when rates go up.
No Prepayment Penalties
With a conventional home loan, you can pay off your mortgage at any time without prepayment penalties.
No Mortgage Insurance Option
You may be able to avoid mortgage insurance with a down payment of 20% or higher.
Buy or Refinance
Conventional loans not only offer you an opportunity to purchase a home, but you can also refinance.
Eligibility at a Glance
- Have a credit score of at least 620?*
- Have a down payment of at least 3%?
- Have a low debt-to-income ratio?
- Have consistent, documented income?
Then you may qualify for a conventional home loan!
*Minimum credit score requirement may vary by investor.
Take Your First Step
Does a conventional loan sound like a great fit for you and your family? Do you like the idea of a low down payment and the flexibility to choose terms that work well for you? Start your application today!
CONVENTIONAL LOAN - FAQs
A conventional loan is a “conforming” loan, which simply means that it meets the requirements for Fannie Mae or Freddie Mac.
Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages from lenders and sell them to investors.
With a conventional mortgage, you can purchase a single-family home, condo, or townhome, and it can be either your primary residence, a second home, or an investment property.
Private lenders who fund conventional loans typically want to see:
- A copy of your driver’s license
- Two years of W2s (or two years of full tax returns if you’re self-employed)
- Two recent pay stubs
- A copy of your mortgage statement if you’re currently paying on a home loan
No. Once the equity you build in your home rises to 20%, you can cancel your mortgage insurance and reduce your monthly payment.
It mainly depends on the risk you pose as a borrower. Lenders will typically look at your credit score, debts, and how much you have for a down payment. They’ll also consider where current market rates are sitting.
First-Time Home Buyers
Not sure where to begin? Follow our step-by-step guide and you’ll be in your new home in no time.
How much home can you afford? Run the numbers with our handy loan calculators.
Have questions about getting a loan? We’re happy to help! Get answers to the most common questions.
Words From Our Happy Homeowners
“The entire process was wonderful. Great staff, always helpful. Simply a great experience.”
First Time Home Buyer
What We’re About
We’re a Kentucky mortgage lender that believes everyone deserves safe and affordable housing. Our overarching mission is to uplift communities throughout Central Appalachia and beyond, and we know that begins with ensuring everyone has a place to call home.
There’s a Loan for Everyone
USDA 502 Direct Loans
Do you have good credit but a limited income and want to live outside the city? Check out the USDA 502 Direct Loan.
USDA Guaranteed Loans
Are you interested in living in a rural area, and your income is moderate? Ask us about USDA-guaranteed loans.
Need flexibility for your credit score and a lower down payment? Take a look at the popular FHA loan.
Do you have a solid credit score and are looking for great rates and options? Consider a conventional loan.
- Are you a U.S. military member or veteran? Find out how you can buy a home with no money down.
Do you have a unique situation? We offer a range of flexible loan programs to fit your needs.