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According to the team at, “a conventional mortgage or conventional loan is a mortgage that isn’t insured or guaranteed by a government agency” like the Department of Veteran Affairs (VA) or the Fair Housing Authority (FHA). Further, these “conventional mortgages are by far the most popular mortgage options for borrowers” seeking to purchase or refinance their family home. In recent years there has been a lot of uncertainty surrounding interest rates and the larger real estate market, but conventional loans are still the best option for many prospective borrowers. Here’s how you can make a traditional home loan work for you in 2023, 2024, and beyond. 


Gather all the Documents You Might Need in Advance 

Your mortgage lender will want you to be able to demonstrate that you can afford to close on your home loan. Gather copies of your most recent bank statements, as well as any retirement accounts or other assets you might use to qualify for your conventional mortgage. (Note that some types of conventional loans, as cash-out refinances, may not ask you to put money down at all, you may in this case instead bundle the closing costs into the final loan amount of your conventional refinance.) 

The lender will also likely want to see proof of your monthly income when you take out a conventional loan on your home. If you are a W-2 employee, you will want to have one or two years of your W-2s on hand, as well as a set of recent pay stubs. Self-employed borrowers, or borrowers who receive payments from Social Security or pension funds, may instead be asked to furnish one or two years of their 1040 tax returns.  

Here’s something you might not know: a few non-conventional home loans, like USDA Rural Development loans, might ask to document the income of all adults living in the home—including adult children who live rent-free! A “conforming” conventional loan– which adheres to the standards set by Fannie Mae and Freddie Mac– will probably only ask to document the income of persons who are actually on the conventional home loan.  


Get a Loan Estimate and Compare Your Options  

At The Federal Savings Bank, we take pride in building a relationship of trust with our borrowers. That’s why we created our free Learning Center, to help prospective home loan applicants make an informed decision about their credit needs. Contact The Federal Savings Bank today to meet with a loan officer and discuss your home lending options. Compare your loan estimate to a loan estimate from another lender and consider what matters most to you from your lender. 

Whatever your mortgage needs, The Federal Savings Bank stands ready to help you turn your homebuying dreams into reality.  


Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property. 

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.