Buying a home is exciting, but it can also feel overwhelming. Beyond finding the right house, you need the right partner to guide you through the mortgage process. The lender you choose will shape your financial life for years to come. A lot of people believe comparing lenders is as simple as looking at the interest rate. That is part of it, but it is not the whole story. Just like choosing a doctor or a financial advisor, the decision should go beyond the surface numbers. The right lender will take time to understand your goals, explain your options clearly, and give you tools to manage your financial future. At NEO Home Loans powered by Better Mortgage, we combine personalized guidance with state-of-the-art technology. You get a team that helps you make smarter financial decisions, along with an AI-powered mortgage process that makes everything faster and easier. Here are seven questions every homebuyer should ask before deciding on a lender, along with how NEO answers them differently. How will this loan fit into my long-term success? A mortgage is not just about the payment you make each month. It is a financial tool that can either limit your choices or give you flexibility. Ask your lender how their loan options support your long-term plans, such as career moves, starting a family, or preparing for retirement. At NEO, our process begins with Discovery and Strategy. We get to know your goals, then show you a Total Cost Analysis, a simple side-by-side breakdown of different loan options. This helps you see which choice truly supports your long-term success. What technology do you use in the loan process? Many lenders rely on digital systems but rarely explain how those systems affect you. It is important to ask what role technology plays in your approval, costs, and timeline. NEO clients benefit from two powerful advantages. First, our partnership with Better Mortgage gives you access to an AI-powered process that is fast, accurate, and stress-free. Second, we provide tools that keep supporting you long after your loan closes. The NEO Experience App is one of those tools. It helps you: Monitor and improve your credit Track your financial accounts and equity Prepare for your next home with personalized strategies Set budgets and stay on top of your goals We combine these features with tools like RateWatch and Mortgage Under Management so you always know when there is an opportunity to save money or adjust your plan. How will you communicate with me during the process? Clear communication is one of the biggest signs of a good lender. If you are constantly chasing down answers during the application, that is what you can expect after the loan closes too. At NEO, communication is proactive. You will always know where you are in the process, what comes next, and how long it will take. That kind of clarity removes stress and builds confidence. Can you help if I am relocating? If you are moving across the country, the transition can be complicated. Ask if your lender provides relocation support or has programs to make the process easier. NEO works with families across the nation and helps them with strategies and resources that make relocation less stressful. You can focus on your family while we focus on the details. What happens after the loan closes? This is one of the most important questions. Most lenders disappear once the ink is dry, but your financial life will continue to change. Your mortgage should adapt with it. At NEO, closing is just the beginning. With Mortgage Under Management, we keep monitoring your loan, reviewing your financial situation, and alerting you when opportunities arise. Whether it is refinancing, using equity for investments, or adjusting your plan as life changes, we are here for the long term. How does this loan affect my bigger financial picture? The best lenders look beyond the transaction. Your mortgage touches almost every part of your financial life, from savings to retirement to family planning. A smart lender will take time to explain how your loan choices affect those goals. That is why NEO advisors ask about your bigger picture and show you how to align your mortgage with the rest of your financial strategy. Do you help me see beyond today? Buying a home is not just about getting approved. It is about making choices that set you up for long-term financial security. Ask if your lender will continue to educate you, guide you, and provide resources well beyond closing. At NEO, we do exactly that. You will receive monthly real estate digests, annual reviews, and even access to a home concierge service that helps you protect and improve the value of your property. We want your mortgage to be a tool for building wealth, not just debt. Why NEO is Different NEO Home Loans is redefining what a mortgage company can be. By combining the speed and efficiency of Better Mortgage’s AI-powered technology with our personalized approach, you get the best of both worlds. Faster approvals and lower costs through Better’s technology Personalized strategies and advice from NEO advisors Long-term wealth management with tools and reviews that adapt as your life changes Most lenders stop at the transaction. We see your mortgage as part of a lifelong journey toward financial freedom. Final Thoughts Choosing a lender is not just about getting the lowest advertised rate. It is about choosing a partner who will guide you, use technology to your advantage, and help you build wealth over time. At NEO Home Loans powered by Better, our mission is to make homeownership a stepping stone to long-term financial success.  Ready to get started? Connect with a NEO Mortgage Advisor today and let us help you build a plan that works for today and for decades to come.

Many new homebuyers wonder what a conventional mortgage loan is. Put simply, a conventional mortgage is a type of home loan that isn’t backed by a government program such as FHA, VA, or USDA. These loans fall into two main categories: conforming, if they adhere to the guidelines and loan limits set by Fannie Mae or Freddie Mac, and non-conforming, if they exceed those limits or don’t meet the criteria. Another way to describe what a conventional mortgage loan is, would be that a conventional mortgage is just a regular home loan from a bank or lender that isn’t protected or helped by the government. Some of these loans follow special rules made by two big companies called Fannie Mae and Freddie Mac, those are called conforming loans. If a loan doesn’t follow those rules, it’s called non-conforming. Think of it like this: if you borrow money to buy a house and the government isn’t involved, that’s a conventional mortgage. In the United States, the majority of Americans secure a conventional mortgage loan for homeownership. Key takeaways about what a conventional mortgage loan is: Not government-backed. Conventional mortgage loans are funded by private lenders and are not insured by FHA, VA, or USDA. Two main types. Conforming loans meet Fannie Mae or Freddie Mac standards and size limits. Non-conforming loans include jumbos and other exceptions. 2025 conforming limit. The baseline one-unit limit is $806,500 dollars in most areas, higher in designated high-cost areas. PMI rules. If you put less than 20 percent down, private mortgage insurance (PMI) is typically required. You can request PMI cancellation at 80 percent LTV and it must end automatically at 78 percent under the Homeowners Protection Act. Conventional vs. government-backed mortgage loans A conventional mortgage loan is any mortgage that does not carry federal insurance or a federal guarantee. By contrast, FHA loans are insured by the Federal Housing Administration, VA loans are backed by the Department of Veterans Affairs, and USDA loans target eligible rural areas. Conventional loans are the most common type and can be less expensive for well-qualified borrowers, but they usually have tighter credit and income standards than FHA. Conforming vs. non-conforming mortgage loans Conforming. Meets Fannie Mae or Freddie Mac eligibility and loan-size caps. In 2025 the baseline one-unit cap is 806,500 dollars. High-cost areas have higher caps, and Alaska, Hawaii, Guam, and the U.S. Virgin Islands follow a higher baseline. Non-conforming. Does not meet those standards. The most common non-conforming type is a jumbo loan that exceeds conforming size limits Typical eligibility factors with conventional mortgage loans Exact requirements vary by lender and by AUS findings, but most conventional loans consider: Credit profile. Conventional programs generally expect solid credit. Certain affordable programs such as Fannie Mae HomeReady allow as little as 3 percent down with income limits and other criteria. Freddie Mac’s Home Possible also permits 3 percent down for eligible borrowers. Debt-to-income (DTI). Fannie Mae’s published Eligibility Matrix outlines LTV, credit score, and manual-underwrite DTI references, while AUS findings may permit higher DTIs for strong files. Down payment and assets. Standard conventional financing is often 5 percent down or more, though 3 percent options exist for eligible scenarios. Gifts and other sources can be allowed subject to program rules. Interest rate structures for conventional mortgage loans Fixed-rate mortgage (FRM). Rate stays the same for the full term. Adjustable-rate mortgage (ARM). Rate is fixed for an initial period, then adjusts at set intervals. Both structures are available in conventional lending and the best choice depends on your time horizon and risk tolerance. Private Mortgage Insurance (PMI) on conventional loans If you put less than 20 percent down, PMI typically applies. Key rules: You may request cancellation when your scheduled principal balance reaches 80 percent of the home’s original value, if you meet conditions like a good payment history. Servicers must automatically terminate PMI at 78 percent LTV under the Homeowners Protection Act (HPA), provided payments are current. PMI is a monthly cost that protects the lender, not the borrower, but it lets you buy sooner with a smaller down payment and later remove the cost as you build equity. Pros and cons of conventional mortgages Advantages Potentially lower total cost than FHA once you qualify, since PMI can be canceled. Broad choice of loan terms and property types. No upfront mortgage insurance premium requirement like FHA. Considerations Tighter credit and income standards than many government-backed options. PMI applies with less than 20 percent down until you reach the HPA thresholds. 2025 loan limits at a glance Baseline one-unit conforming limit: 806,500 dollars High-cost area cap example: Up to 1,209,750 dollars for one-unit homes in designated high-cost areas, and as a baseline for Alaska, Hawaii, Guam, and the U.S. Virgin Islands Always check the specific county limit for your property because limits vary by location and units. Who is a conventional loan best for? Conventional financing tends to fit borrowers who have: Stable income and a manageable DTI Good credit Savings for the down payment and reserves Borrowers with thinner credit or higher DTIs sometimes compare FHA to see which produces the better all-in cost over the expected holding period. How to qualify in five steps Check your credit and debts. Review reports, correct errors, and estimate DTI. Fannie Mae’s matrix and AUS findings guide many lender decisions. Estimate your price range. Use 2025 conforming loan limits to see whether you are likely in conforming or jumbo territory. Plan your down payment. Decide whether you will target 20 percent to avoid PMI or explore 3 to 5 percent down programs like HomeReady or Home Possible if you are eligible. Get pre-approved. A full credit-pull pre-approval clarifies your budget and strengthens offers. Compare total cost. Price out rate, points, PMI, taxes, insurance, and anticipated PMI removal timing using HPA rules. FAQs for quick, direct answers Is a conventional loan the same as a conforming loan? Not exactly. All conforming loans are conventional, but not all conventional loans conform to Fannie Mae or Freddie Mac rules. Jumbos are conventional but non-conforming. What credit score do I need? There is no single cutoff across all scenarios, but common affordable conventional programs cite minimums in the low-600s with program-specific rules and AUS findings. Lenders may require higher scores for certain LTVs or properties. How much can I borrow with a conforming conventional loan in 2025? In most counties the one-unit limit is 806,500 dollars. High-cost counties allow higher amounts. Verify your county’s exact limit. Do I need 20 percent down? No. Many buyers use less than 20 percent down and pay PMI until they reach the HPA thresholds. Some programs allow 3 percent down for eligible borrowers. When can PMI end on a conventional loan? You can request cancellation at 80 percent LTV, and automatic termination generally occurs at 78 percent LTV if you are current. How NEO Home Loans powered by Better helps you compare options  If you are deciding between conventional, FHA, VA, or jumbo, a licensed loan advisor can run side-by-side scenarios that factor in rate, points, PMI, potential PMI removal timing, cash to close, and your time horizon. That kind of total-cost view helps you pick the structure that fits your goals while staying aligned with 2025 loan-limit rules and current program eligibility.

The housing market shifts we are experiencing today are some of the most significant in years. According to the Bank of America Institute, new home supply has reached its highest level since 2007, existing home supply is at its highest since 2016, and affordability challenges continue to keep many buyers on the sidelines. For builders, real estate agents, and homeowners, these changes in the housing market can feel like headwinds. But with the right lending partner, housing market shifts can also be transformed into opportunities. That’s where NEO Home Loans powered by Better steps in. The Challenge Facing Builders in a Shifting Housing Market Inventory is rising. Competition is tightening. Median new home prices are now lower than existing home prices, putting pressure on margins. Builders can’t afford financing hurdles or delays that cause buyers to hesitate. How NEO Helps Builders During Housing Market Shifts: Creative lending strategies that improve affordability and increase buyer urgency. Faster closings powered by Better’s AI-native platform to eliminate bottlenecks. Tailored programs like bridge solutions and cash-flow strategies that help buyers say “yes” faster. The Challenge Facing Real Estate Agents in an Uncertain Housing Market Real estate agents are seeing listings stay on the market longer as home buyers hesitate due to affordability and job instability. Confidence is low, and clients need more clarity than ever. How NEO Helps Agents: Buyer education tools that simplify today’s financing strategies. Real-time data and rate insights to guide clients toward action. Co-marketing support to strengthen your brand and earn long-term trust. The Opportunity for Homeowners Amid Housing Market Shifts For homeowners considering a move-up purchase, today’s shifting housing market may look uncertain, but it also presents opportunity. Builders are offering incentives, rates are reacting to Fed policy, and innovative financing strategies can unlock greater purchasing power. How NEO Helps Homeowners: Equity-focused strategies to build wealth long after closing. Custom financing solutions to overcome affordability challenges. A transparent, tech-driven process powered by Better, giving clients clarity at every step. Why Partner With NEO Home Loans Powered by Better Now There has never been a better time for partnership. The pressures created by housing market shifts are exactly why NEO exists: to turn challenges into competitive advantages. By combining the human expertise of local mortgage advisors with the speed and intelligence of Better’s AI-native platform, NEO delivers results for builders, agents, and homeowners alike. If you’re a builder or agent, now is the time to partner with NEO Home Loans powered by Better. We understand your challenges and we have the strategies, technology, and commitment to help you win more business in today’s housing market.

If you’ve been watching the housing market, you may be wondering: is this a slowdown—or is it actually a moment of opportunity? The headlines can feel confusing. On one hand, existing home sales are softening. On the other, new home sales are seeing a surge. Add in some economic uncertainty and a shifting job market, and it’s no wonder people are hesitant. Let’s unpack what’s really going on—and how you can move forward with clarity. Existing Home Sales: A Slight Dip and Rising Cancellations In April, existing home sales fell slightly—down 0.5% from March to an annualized pace of 4 million homes. That’s the slowest April since 2009. Economists had expected stronger numbers, but one key factor likely caused the dip: more deals are falling through. The cancellation rate rose to 7%, likely due to recent stock market volatility. Some buyers saw their savings shrink, while others chose not to sell investments at a loss. Still, this doesn’t mean the market is crashing. It means that in uncertain times, buyers are simply being more cautious. What this means for you: If you’re a buyer, this could mean less competition—especially on existing homes. And if you’re a seller, you’ll want to be sure your home is priced right and presented well. The buyers are still out there, but they’re more selective. New Construction: Demand is Picking Up Speed While existing home sales dipped, new home sales told a different story. In April, new home contracts rose by nearly 11%—the strongest monthly gain in three years. That’s a clear sign that buyers are still active. They’re just shifting their focus to new homes, where there’s more inventory and often more flexibility. In fact, even though the median price of new homes dipped slightly, overall demand has remained strong. What this means for you: If you’re a buyer struggling to find the right home, new construction may open more doors—literally. Builders are often offering incentives, and in many cases, you can avoid the competition and stress that can come with bidding wars on existing homes. The Job Market: Stability Is the Watchword The job market also sends a mixed message. On one hand, initial jobless claims remain low—meaning layoffs aren’t spiking. On the other, continuing claims just climbed to 1.9 million, the second highest since 2021. This suggests that while fewer people are losing jobs, those who are may be taking longer to find new ones. And that can make some buyers hesitate. What this means for you: If you’re planning to buy, job stability is an important piece of the puzzle. It affects your loan approval, your confidence, and your timing. If you’re in between roles or planning a career shift, talk with your mortgage advisor early—we can help you create a plan that makes sense, both financially and personally. So—Is This a Slowdown or an Opportunity? Honestly, it’s a little of both. Yes, there’s more caution in the market right now. But that’s exactly when the right strategy can help you stand out. The truth is, inventory is still low, and demand remains steady. Home prices aren’t falling—they’re adjusting. And buyers who are prepared are still finding great opportunities. Here’s what we recommend: If you’re selling: It’s still a strong market, especially for well-presented homes. Inventory is low, and serious buyers are looking. Listing now means less competition and a chance to stand out. If you’re buying: Focus on preparation. Get fully pre-approved, not just pre-qualified. Explore all your options—especially new construction. Work with a team who understands how to navigate this market and advocate for your best deal. Let’s Build a Plan That Works for You The market may be shifting, but the fundamentals still point toward opportunity. Whether you’re buying your first home or preparing to list, we’re here to guide you every step of the way—with clear advice, personalized strategies, and tools to help you succeed. If you’re ready to move forward, let’s talk. We’ll help you understand your options and make smart decisions in today’s market. Ready to get started? Let’s connect and build your homeownership strategy.