Benefits of a Conventional Home Loan
- Freddie Mac and Fannie Mae insured
- Primary, Second or Investment Property
- Single and Multi-Family, Condo’s & Manufactured Homes
- Mortgage Insurance Options
- Lower Rates and Better Terms
- 97% Loan to Value – Conforming
- 95% Loan to Value – High Balance
A conventional mortgage loan, also called a conforming loan, is a traditional loan that follows the guidelines set by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
- Loan Amount: 1 unit $424,100, 2 unit $543,000, 3 unit $656,350, 4 unit $815,650
- Terms: Pick you term up to 30 years
- Financing (Purchase or Refinance): up to 97% of loan value
- Financing (Cash Out) Option: up to 80% of loan value
- No mortgage insurance options on all conventional programs
- No appraisal required on special conventional programs
FIXED RATE LOANS: Are designed to have equal fixed payments for the specified term. These offer predictability and are deemed to be less risky for borrowers. Fixed rate mortgage loans are available with all mortgage products and are typically offered in 15 year and 30 year terms. Fixed rate mortgage loans are also offer in 10 year, 20 year and 25 year terms although less common due to demand.
ADJUSTABLE RATE LOANS: Are known as ARM’s are also available with all mortgage products although are limited with FHA, USDA and VA mortgages. ARM’s are a great fit for home buyers who plan to sell or refinance their home within 1 to 10 years of purchase and are looking for a lower payment. An adjustable rate mortgage begins as a fixed rate for a specific period of time and then the rate adjusts on predetermined time period based on financial index and a fixed margin.
Deciding on what loan type to use when purchasing a home can be confusing. Allow one of our licensed mortgage experts to assist you and get a quote with no obligation to proceed. Click below to get started with your pre-approval today.
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|Table Header||Table Header|
|Minimum FICO Credit Score||620|
|Minimum Down Payment||3% - 5%|
|Maximum Loan To Value||97%*|
|Maximum Debt To Income||45%*|
Exceptions to 50%
|Years Since Bankruptcy||4|
|Years Since Foreclosure||7|
|Years Since Short Sale||4|
|Special Qualification Requirements||None|