Discover Hidden Advantages of Conventional Loans
While conventional loans are known for their flexibility and affordability, many borrowers aren’t aware of the unique benefits that could make them the perfect fit for your financial goals. Here are some lesser-known advantages of conventional loans that can help you save money and open up more opportunities in your home-buying journey:

1. Freedom from Property Restrictions
Conventional loans provide greater flexibility when it comes to property types. Whether you’re looking to purchase a second home, a vacation property, or an investment property, conventional loans are a versatile solution, unlike government-backed loans that may limit your options.
2. No PMI with 80/10/10 Loan Structure
Want to avoid paying Private Mortgage Insurance (PMI) without putting 20% down? With an 80/10/10 loan, you can! This structure allows you to take out two loans — one for 80% of the home’s price and another for 10% — while putting 10% down, eliminating the need for monthly PMI payments.
3. Faster Loan Processing for a Competitive Edge
In a hot real estate market, speed can make all the difference. Since conventional loans don’t involve government agencies, they often have quicker approval times, giving you an edge when you need to close on a home fast.
4. Use Gift Funds for Down Payment
If you’re a first-time buyer or receiving help from family, you can use gift funds toward your down payment with a conventional loan. This flexibility can make homeownership more accessible without having to rely solely on personal savings.
5. No Upfront Mortgage Insurance Fees
Unlike FHA loans, conventional loans do not require an upfront mortgage insurance premium. This means you can avoid the extra cost at closing, putting more money toward your home or other priorities.
6. Higher Loan Limits in High-Cost Areas
If you're looking to purchase a home in a high-cost market, conventional loans have higher conforming loan limits in these areas, offering better terms and rates without needing a jumbo loan.
7. Streamlined Refinancing Options
If you’re refinancing a conventional loan and have a good payment history, you could qualify for a streamlined refinance with less paperwork and quicker processing, saving you time and hassle.
8. Tailored Solutions for Self-Employed Borrowers
Conventional loans can be more accommodating for self-employed borrowers, offering flexible income verification methods like cash flow analysis, making homeownership more attainable for those running their own businesses.
9. Flexible Occupancy Requirements
Looking to buy an investment property or a vacation home? Conventional loans offer more flexible occupancy requirements compared to government-backed loans, which often require the property to be your primary residence.
At Encore Mortgage Funding, Inc. we leverage these advantages benefits to help you find the loan that best fits your financial picture. Contact us today to learn how a conventional loan could work for you!