Conventional Home Loans - Buy a Home in NJ with a Conventional Mortgage
Trusted, Flexible Financing for New Jersey Buyers
Looking for a straightforward path to homeownership? A conventional home loan might be your best fit. At Elias Mortgage, we help buyers across New Jersey-from Monroe Township to East Brunswick to Old Bridge-secure conventional mortgages with competitive rates, low monthly costs, and flexible terms.
Whether you're a first-time buyer or moving into your next home, we'll walk you through the process clearly and explain your options in plain English-no lectures, no pressure.
What Is a Conventional Loan?
A conventional mortgage is a home loan that isn't backed by a government agency like the FHA or VA. Most conform to Fannie Mae and Freddie Mac guidelines, and they're commonly offered in 30-year and 15-year terms with fixed or adjustable rates.
Conventional loans can be used for:
- Primary residences
- Vacation or second homes
- Investment properties
These loans typically require a stronger credit profile and a down payment of at least 5%-though some programs allow as little as 3% for qualifying first-time buyers.
Why Choose a Conventional Loan?
For borrowers with solid credit and some savings, conventional loans offer real benefits:
- Lower monthly mortgage insurance (or none at all with 20% down)
- No upfront mortgage insurance premium, unlike FHA
- Flexible property types-single-family, condos, multi-units, and more
- Higher loan limits than some government-backed loans
- No income restrictions for standard conventional options
We'll review your goals, compare your eligibility, and show you how conventional stacks up against other choices.
What You Need to Qualify for a Conventional Mortgage
To get approved for a conventional home loan in New Jersey, here's what lenders usually look for:
- Credit Score: Typically 620 or higher
- Down Payment: At least 5%, or 3% if eligible for certain first-time buyer programs
- Debt-to-Income Ratio (DTI): Usually under 45% (though exceptions exist)
- Stable Income & Employment
- Sufficient Assets for Down Payment & Closing Costs
If you meet these standards, you may find that a conventional loan saves you money over time-especially if you want to avoid mortgage insurance or plan to buy a second home.
First-Time Buyer? You Might Still Qualify
Many first-time buyers think conventional loans are out of reach-but that's not always true. Programs like Fannie Mae's HomeReady® or Freddie Mac's Home Possible® offer 3% down options with relaxed income limits, competitive rates, and reduced mortgage insurance.
If you're buying your first home in Middlesex County or anywhere in Central Jersey, we'll help you figure out whether you qualify for these programs or if an FHA loan would be a better match.
Conventional vs. FHA or VA Loans: What's Best for You?
Choosing the right loan depends on your finances, goals, and comfort level. Here's how conventional compares:
Conventional vs. FHA
If you have strong credit and can put at least 5% down, conventional may offer lower long-term costs. FHA is better for buyers with lower scores or smaller savings.
Conventional vs. VA
If you're a veteran or active-duty military, VA loans offer 0% down with no PMI-often a better deal than conventional.
We'll help you weigh the options and choose what works best for your budget and future plans.
Frequently Asked Questions About Conventional Loans
What is PMI and how can I avoid it?
PMI (Private Mortgage Insurance) is required if your down payment is under 20%. With a conventional loan, PMI can be removed once you reach 20% equity-unlike FHA, where it often sticks around for the life of the loan.
How soon can I get pre-approved for a conventional mortgage?
START YOUR APPLICATIONYou can start the pre-approval process right now. We'll review your credit, income, and assets and issue a letter you can use when shopping. It usually takes 1-2 business days.
Can I buy a rental or investment property with a conventional loan?
Yes. You'll typically need a larger down payment (15-25%) and stronger credit, but conventional loans are commonly used to finance investment real estate.
Can I refinance later with a conventional loan?
SEE REFINANCE OPTIONSAbsolutely. If rates drop or your equity increases, you may be eligible to refinance into a better rate or remove PMI.
Let's See If a Conventional Loan Is Right for You
Conventional mortgages offer great flexibility and long-term value-if your finances line up. At Elias Mortgage, we'll help you figure that out quickly, clearly, and without any pressure.