Conventional Loans
Traditional mortgage financing backed by Fannie Mae and Freddie Mac. Conventional loans offer competitive rates and flexible terms for qualified New Jersey homebuyers.
What Is a Conventional Loan?
A conventional mortgage is not insured or guaranteed by a government agency like FHA or VA. Instead, it follows guidelines set by Fannie Mae and Freddie Mac — two government-sponsored enterprises that purchase mortgages from lenders.
In New Jersey's competitive housing market, conventional loans remain the most popular choice because they often offer the best rates for borrowers with strong credit and sufficient down payment.
Daniel Metri works with multiple investors to find you competitive conventional loan pricing available, whether you're buying in Bergen County or anywhere else in NJ.
Who This Program Fits Best
- Borrowers with credit scores of 620 or higher
- Those who can put down at least 3% of the purchase price
- Buyers seeking primary residences, second homes, or investment properties
- People who want to avoid upfront mortgage insurance premiums
- Borrowers looking for the most competitive long-term rates
Key Requirements & Guidelines
Minimum Down Payment
Low
As low as 3% for qualified first-time buyers
Standard minimums may be higher
Credit Score Guidance
Varies
Generally requires solid credit
Higher scores typically mean better terms
Debt-to-Income Ratio
Guideline
Standard DTI limits apply
Strong reserves help flexibility
Loan Limits (NJ)
Conforming
Set annually by federal agencies
High-cost areas may have higher limits
Pros & Cons
Advantages
- • Competitive interest rates
- • No upfront mortgage insurance premium
- • Can eliminate PMI once you reach 20% equity
- • Flexible property types allowed
- • Available for primary, second homes, investment
Considerations
- • Higher credit score requirements than FHA
- • Larger down payment typically needed
- • Stricter debt-to-income guidelines
- • PMI required if down payment under 20%
- • May require more documentation
Disclaimer: All loan program information provided is for illustrative purposes only. Actual rates, fees, and terms are subject to change based on market conditions, creditworthiness, and other factors. A loan approval requires full application review, underwriting, and property approval. This is not a commitment to lend. Contact Daniel Metri at Barrett Financial Group (NMLS #2069883) for current program details and personalized guidance.