Conventional Loans

Looking to buy your first home or refinance with a conventional loan? Let us help you navigate your way to your dream home.

How Luminate's conventional loans can unlock your potential through finances.

Conventional loans at Luminate are a great option for many homebuyers due to their flexibility. But what exactly are conventional home loans, and is one right for you? If you find yourself asking questions like this, or “what are some conventional loan requirements?” or “do I qualify for a conventional loan?”—you’ve come to the right place.

At Luminate Bank we make it our priority to guide you through the best financial decisions, all with your interest in mind. It’s our goal to help you feel informed and engaged throughout the entire lending process. Let us light the way to homeownership for you.

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What is a Conventional Loan?

In short, a conventional loan is a mortgage that is not guaranteed or insured by any government agency. Other loans that we offer—such as the Federal Housing Administration (FHA loans), Department of Federal Affairs (VA loans), and Farmers Home Administration (USDA loans)—are insured by federal agencies.

What does that mean for homebuyers?

Since insurance protects lenders, this means that you’ll need to take the cost of mortgage insurance into account when considering a conventional loan.

In addition, you’ll also need to remember that conventional loans can be a little bit challenging to qualify for. But—because this loan isn’t backed by a federal agency—these loans tend to be more flexible as far as properties you can choose from, fees, and loan structures available.

What Are the Benefits of a
Conventional Loan vs. Any Other Loan?

If you have a good credit score and the cash to put down, conventional loans can be the way to go! You don’t have to pay for private mortgage insurance (PMI), and they’re typically fixed in the terms and rate.

Low Down Payment

You only need a 3-5% minimum down payment on a conventional loan.

No Mortgage Insurance

When you put down 20% or more, you won’t need mortgage insurance.

Flexibility

Mortgage insurance can be removed after reaching 20% equity or paying down to 78% of the loan to value.

Better Property Standards

Conventional loans are much more lenient with property standards than other loan options.

Minimal Fees

With a Luminate conventional loan, there are no upfront fees!

Quick Closing Times

On average, loan applications will close within 21 days when you work with Luminate.

Do you qualify for a Conventional Loan?

If you don’t know the answer to this question, that’s completely okay! One of our team members will be happy to go over the details with you, but typically you’ll need a strong fico credit score and a down payment of at least 3%. Conventional loans can sometimes seem daunting, but if you’re able to qualify, they can be extremely beneficial.

Conventional Property Guidelines

No broken windows
Roof in good condition
Working AC/Heat
Smoke/carbon monoxide detectors
No mold stains
Handrails on stairs
No cracks in the walls, ceilings, or flooring

Still unsure if a Conventional Loan is right for you?

That’s okay—because our team is here to help guide you every step of the way. We don’t want you to feel left out in the dark, but instead to have complete clarity and transparency throughout your entire loan process.

Here at Luminate Bank, we truly believe in our mission and core values. We focus on people like you because we understand that character does count. We stay humble and work hard so that the lending process stays approachable and transparent every step of the way.