When you are looking to get conventional mortgage loan, there are two options. These are conforming and non-conforming loans. The former option is a loan that conforms to set financing limits created by the FHFA (Federal Housing Finance Agency). This type of loan in particular comes with several advantages.

Lower Down Payment

A make-it-or-break-it factor for a lot of home buyers is the down payment. It's the amount of money that must be put down on a particular home before financing is given. Some mortgage loans have a pretty high down payment requirement, which isn't always feasible for families to meet.

If you're in this situation, a conforming loan may be the best thing to seek out. It may not require as much for the down payment as a nonconforming loan. Consequently, gathering money together for this payment will be much more manageable.  

Better Interest Rate

The interest rate is often considered one of the most popular financial aspects of securing any type of loan, let alone a mortgage loan. It's essentially the amount of money you'll be paying back to the lender for them giving you a set amount in a loan.

In an ideal situation, you want this interest rate to be as low as possible. A conforming loan may be your best chance of getting the lowest interest rate. These rates will be different for each lender, but most of the time, conforming loans have better interest rates than nonconforming loans.

Less Stringent Qualifying Process

When you apply for a mortgage, you want to have an easy time getting accepted. You then know what you can afford, and that will help when it comes time to go out looking for properties. 

Often, the qualifying process for a conforming loan isn't as stringent. You just need to make sure you meet certain criteria, such as making a certain amount of money and having a particular credit score.

However, the criteria for qualifying for a conforming loan isn't as strict as for a nonconforming loan. That can help you have a better chance of getting a loan for the house you love. 

If you've made it to a point to buy a home and you plan on financing it with a conventional loan, you might consider getting a conforming loan in particular. It offers a lot of benefits to home buyers today that can make this entire process easier to get through. Contact a lender that offers conforming loan programs to learn more.