Conventional Home Loans

A conventional home loan is a popular type of mortgage that is not insured or guaranteed by a government agency like the FHA or VA. These loans are offered by private lenders and often provide competitive rates, flexible terms, and options for primary residences, second homes, or investment properties. In Roswell, NM, conventional loans are an excellent choice for buyers with stable income and strong credit.

The primary difference lies in who guarantees the loan. Conventional loans are not backed by the government, which allows for more flexible terms and a wider range of loan structures. In contrast, government-backed loans, such as FHA or VA loans, are insured by federal agencies and often cater to specific needs like lower credit scores or zero down payment. Conventional loans are ideal for buyers who meet standard credit and income requirements and prefer flexible options.

Most lenders require a credit score of at least 620 for a conventional loan, though higher scores typically qualify you for better interest rates and terms. If you’re unsure whether your credit score meets the requirements, The Bamman Team can help review your financial situation and explore the best loan options available in New Mexico.

The required down payment for a conventional loan can be as low as 3% for qualified buyers, making it a great option for those with limited upfront funds. However, putting down 20% or more allows you to avoid private mortgage insurance (PMI), which can lower your monthly payments. The Bamman Team will help you determine the best down payment strategy for your budget and financial goals.

Private mortgage insurance (PMI) is a policy that protects the lender in case the borrower defaults on the loan. PMI is typically required if your down payment is less than 20%. However, one of the advantages of a conventional loan is that PMI can be canceled once you build enough equity in your home. This makes conventional loans more cost-effective over time compared to some government-backed loans.

Yes, conventional loans are a great choice for purchasing investment properties or second homes. These loans provide flexibility for financing properties that are not intended as primary residences. If you’re considering investing in the Roswell real estate market, The Bamman Team can help you secure a loan that aligns with your goals.

Conforming loans are conventional loans that meet the loan limits set by the Federal Housing Finance Agency (FHFA). In 2025, the conforming loan limit for most areas, including Roswell, NM, is $726,200. Non-conforming loans, also known as jumbo loans, exceed these limits and are designed for higher-value properties. Both options are available through The Bamman Team, and we’ll help you choose the best fit for your needs.

The choice between a fixed-rate and an adjustable-rate mortgage depends on your financial situation and plans. A fixed-rate mortgage offers predictable monthly payments over the life of the loan, making it ideal for long-term stability. An ARM, on the other hand, starts with a lower initial rate that adjusts periodically, which may be suitable if you plan to move or refinance within a few years. The Bamman Team will help you evaluate both options to determine what’s best for you.

To qualify for a conventional loan, you’ll need to meet credit, income, and down payment requirements. Lenders typically look for a steady income, a credit score of 620 or higher, and a reasonable debt-to-income ratio. At The Bamman Team, we’ll guide you through the pre-approval process, ensuring you understand the qualifications and feel confident every step of the way.

The Bamman Team offers personalized service, local expertise, and a commitment to making the mortgage process simple and stress-free. With a deep understanding of the Roswell housing market and access to a wide network of lenders, we provide competitive rates and tailored loan options. Whether you’re buying your first home, upgrading, or investing, we’re here to help you achieve your homeownership goals.