8 Conventional Loan Myths Debunked

Myth 1: conventional loans are slow to close

Truth: Valley West closes conventional loans in 28 days average — faster than the 44-day national average for conventional loans.

Myth 2: Sellers hate conventional offers

Truth: A strong pre-approval letter eliminates seller concerns. conventional buyers are often the most qualified — steady income, job stability, and a government guarantee.

Myth 3: You can only use conventional once

Truth: conventional equity is reusable. You can have multiple conventional loans simultaneously or restore equity after selling.

Myth 4: conventional loans have a maximum amount

Truth: With full equity, there is no conventional loan limit. You can buy a $1M+ home with 5-20% down.

Myth 5: conventional appraisals always kill deals

Truth: conventional appraisal pass rates are over 90%. The inspection protects you from overpaying. Valley West handles any issues that arise.

Myth 6: You need perfect credit for conventional

Truth: conventional has no official minimum credit score. Most lenders accept 620+. Valley West works with all credit levels.

Myth 7: The closing costs makes conventional expensive

Truth: The 2.15% closing costs is far less than paying PMI for years. Plus disabled homebuyers pay $0. And you save $66K+ over conventional over 30 years.

Myth 8: conventional is only for buying — not refinancing

Truth: conventional rate-and-term refinance (Interest Rate Reduction Refinance) is one of the fastest, easiest refis available. No appraisal needed. See conventional refinance options →

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