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Conventional Loans: Your Path to Nashville Homeownership
This loan is for buyers with good credit looking for flexibility. It is perfect for buying homes in Nashville, Franklin, and surrounding areas. You can often avoid some extra costs compared to other loan types.
See if Conventional is Right For YouConnect with Keith Goeringer to discuss your home loan options.
Who Qualifies
- ✓A credit score of 620 or higher, 680+ is ideal for the best rates
- ✓Stable income and employment history
- ✓A debt-to-income ratio generally below 43-50%
- ✓Enough funds for a down payment, as low as 3%
- ✓The home will be your primary residence, second home, or investment property
How It Works
- 1We discuss your financial situation and goals to see if a conventional loan is right for you.
- 2You complete a loan application and provide necessary documents like pay stubs and bank statements.
- 3We get you pre-approved so you know what you can afford when shopping for homes in Nashville.
- 4Once you find a home, the loan goes through underwriting and appraisal.
- 5We close on your new home, and you get the keys.
What This Means in Nashville and Middle Tennessee
Nashville and Middle Tennessee homes can be expensive. Think about places like Brentwood, Franklin, or even parts of East Nashville. A conventional loan is often a great fit here. It means you can buy a house without a huge down payment, sometimes as little as 3% down. This helps you get into the market sooner, even with rising prices in zip codes like 37027 or 37205.
Conventional loans follow Fannie Mae and Freddie Mac rules. They are the most common type of mortgage. This makes them very flexible for many buyers. If you are looking at a home in a higher-priced area, or if you are a repeat buyer, a conventional loan is usually what we look at first. It is often the smartest choice for move-up buyers in areas like Murfreesboro or Hendersonville.
The conforming loan limit for our area is currently $766,550 for a single-family home. This means most homes in Nashville and the surrounding counties will fall under this limit and qualify for a conventional loan. If you are looking for something above this, we can discuss jumbo loan options. Keith Goeringer can help you figure out the best loan for your situation.
How It Compares
| Feature | Conventional Loans | FHA Loans |
|---|---|---|
| Down Payment | As low as 3% | As low as 3.5% |
| Credit Score | Typically 620+, 680+ for best rates | Typically 580+ |
| Mortgage Insurance | Can be cancelled once you reach 20% equity | Required for life of loan unless 10% down or refinance |
| Best For | Buyers with good credit, 20% down, or those who want to avoid long-term mortgage insurance | Buyers with lower credit scores or smaller down payments |
Common Myths About Conventional Loans
✓Not true. You can put down as little as 3% on a conventional loan.
✓While good credit helps, you can qualify with a credit score of 620. Better scores get better rates.
✓No, conventional loan mortgage insurance can be cancelled once you reach 20% equity in your home. This is a big advantage.
Frequently Asked Questions
You generally need a credit score of at least 620 to qualify for a conventional loan. Scores of 680 or higher usually get you better interest rates and terms.
Yes, absolutely. Conventional loans are very common for homes in Franklin, Brentwood, and other Middle Tennessee cities. They work well for many price points.
You can put down as little as 3% for a conventional loan. If you put 20% down, you can avoid paying private mortgage insurance (PMI) altogether.
Conventional loans have more flexible mortgage insurance rules and often better rates for good credit. FHA loans are great for lower credit scores or smaller down payments but have upfront and ongoing mortgage insurance.
No, conventional loans do not have an upfront mortgage insurance premium. This is a key difference from FHA loans.
Related Guides
Ready to Get Started?
Keith Goeringer (NMLS #488023) will review your file and explain which questions still need an answer before you rely on a loan option.
See if Conventional is Right For You(615) 955-0461Questions About Conventional Loans?
Keith Goeringer will compare the program with your actual income, debts, cash, property, and current guidelines before you make a decision.
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