Conventional Mortgage Loans in Teaneck, New Jersey
Conventional loans are the most popular mortgage option for homebuyers in Teaneck, offering competitive interest rates, flexible terms, and no government restrictions. These mortgages are ideal for buyers with good credit and stable income who want maximum flexibility.
Key Benefits of Conventional Loans in Teaneck
As low as 3% down payment for qualified first-time buyers
Lower overall costs with 20% down (no mortgage insurance)
Competitive interest rates for strong credit (700+)
Flexible property types: single-family, condos, multi-family
Higher loan limits than FHA ($766,550 in Bergen County)
Option to cancel PMI once you reach 20% equity
Choose from 15-year, 20-year, or 30-year terms
Second homes and investment properties eligible
Requirements & Qualifications
- 1
Minimum credit score of 620 (700+ for best rates)
- 2
Debt-to-income ratio typically below 43%
- 3
Down payment of 3-20% (PMI required if less than 20%)
- 4
Two years of stable employment and income
- 5
Documented income, assets, and employment
- 6
Property appraisal meeting lender standards
- 7
Cash reserves (typically 2-6 months of payments)
The Process: Step by Step
Get pre-approved to determine your budget and strengthen offers
Shop for homes in Teaneck within your approved price range
Submit purchase offer with pre-approval letter
Complete home inspection and appraisal
Final underwriting review and approval
Schedule closing and review all loan documents
Close on your Teaneck home and receive keys!
Frequently Asked Questions
What is the difference between conventional and FHA loans in Teaneck?
Conventional loans typically require higher credit scores (620+ vs 580+) and larger down payments, but they offer lower overall costs for qualified buyers. With 20% down, you avoid mortgage insurance entirely—something FHA loans require for the life of the loan. Conventional loans also have higher loan limits ($766,550 vs $766,550 in Bergen County), making them ideal for Teaneck's median home prices.
How much do I need for a down payment on a conventional loan?
Down payment requirements range from 3% to 20%. First-time buyers may qualify for 3% down programs. With less than 20% down, you'll pay private mortgage insurance (PMI) until you reach 20% equity. Putting 20% or more down eliminates PMI and typically qualifies you for better interest rates.
Can I use a conventional loan for a condo in Teaneck?
Yes! Conventional loans are excellent for condos in Teaneck. The condo complex must be on Fannie Mae or Freddie Mac's approved list, and the building must meet certain financial and occupancy requirements. We can verify if a specific condo is eligible before you make an offer.
What credit score do I need for a conventional loan?
The minimum credit score is 620, but scores of 700+ qualify for the best interest rates and terms. If your score is between 620-699, you'll still qualify but may pay slightly higher rates. We can help you understand how your credit score affects your rate and monthly payment.
Ready to Get Started in Teaneck?
Let's discuss your conventional loans options and create a personalized plan for your Teaneck home.