Conventional Home Loans
Conventional Home Loans in Cadiz KY
Looking for a straightforward, flexible mortgage solution? Conventional home loans are one of the most popular options for qualified buyers in Cadiz and across Western Kentucky. At Quality Home Mortgage, we help you secure competitive rates, low fees, and terms that fit your long-term financial goals.
What Is a Conventional Loan?
A conventional loan is not backed by a government agency like FHA, VA, or USDA. Instead, it's offered through private lenders and follows guidelines set by Fannie Mae and Freddie Mac. These loans are ideal for borrowers with stable income, good credit, and a moderate down payment.
Standard, Non-Government-Backed Financing
Benefits of Choosing a Conventional Mortgage
Why It Might Be Right for You
- Lower overall borrowing costs compared to government-backed loans (with strong credit)
- Flexible term lengths (typically 15, 20, or 30 years)
- No upfront mortgage insurance premium
- Option to eliminate PMI (private mortgage insurance) once you reach 20% equity
- Available for primary residences, second homes, and investment properties
Who Qualifies for a Conventional Loan?
While eligibility varies slightly by lender, here are the general requirements:
- Minimum credit score of 620+ (higher scores = better rates)
- Stable income & employment history
- Debt-to-income ratio under 45%
- Down payment starting at 3% (for some qualified buyers) or 5%–20% on average
We help you determine exactly what you qualify for and whether conventional is your best route — especially compared to FHA or USDA alternatives.
Conventional vs. Government-Backed Loans
| Feature | Conventional | FHA | USDA | VA |
|---|---|---|---|---|
| Backed by Gov't? | ❌ | ✅ | ✅ | ✅ |
| Minimum Down | 3–5% | 3.5% | 0% | 0% |
| Mortgage Insurance | PMI until 20% equity | Required for life (under 10% down) | Lower MI | No MI |
| Credit Score Flexibility | Higher required | More forgiving | Moderate | Moderate |
Not sure which to choose? That’s where we come in.
Conventional vs. Government-Backed Loans
| Feature | Conventional | FHA | USDA | VA |
|---|---|---|---|---|
| Backed by Gov't? | ❌ | ✅ | ✅ | ✅ |
| Minimum Down | 3–5% | 3.5% | 0% | 0% |
| Mortgage Insurance | PMI until 20% equity | Required for life (under 10% down) | Lower MI | No MI |
| Credit Score Flexibility | Higher required | More forgiving | Moderate | Moderate |
Not sure which to choose? That’s where we come in.
How the Process Works
1
Consultation & Pre-Approval
We assess your finances and get you pre-approved for a conventional loan amount that fits your budget.
2
Find Your Home
Use your pre-approval letter to shop with confidence.
3
Application & Underwriting
We handle all documentation, appraisal coordination, and underwriting communication on your behalf.
4
Closing
We guide you through final paperwork and ensure on-time closing — often in 30 days or less.
FAQs About Conventional Home Loans
How much do I need for a down payment?
Some conventional loans allow as little as 3% down, depending on your credit and income. Most buyers put down 5–20%.
Do I need mortgage insurance?
If you put down less than 20%, private mortgage insurance (PMI) is typically required — but it can be removed once you build enough equity.
Can I use a conventional loan for an investment property?
Yes. Conventional loans are often the go-to option for second homes or rental properties.
Is a conventional loan better than FHA?
It depends. FHA loans are more flexible with credit and down payment. Conventional loans can be more affordable over time for stronger borrowers.
Start Your Loan with a Local Expert
At Quality Home Mortgage, we don’t just process paperwork — we provide clear answers and fast results. If you’re ready to explore a conventional mortgage in Cadiz or the surrounding area, we’re ready to help.