onventional Mortgages are mortgages that are not insured by the Federal Government. These mortgages can be conforming or non-conforming. Conforming means they have the ability to be sold to the government-sponsored enterprises (GSE), Fannie Mae and Freddie Mac. The GSE has necessary guidelines for these mortgages to be eligible for purchase, loan limits being one of the main guidelines. Non-conforming means that the mortgage does not meet the guidelines and has to be sold to an investor such as a bank, credit union or private lender. These are often called Jumbo mortgages as they are often over the acceptable loan limit.
Fixed Rate Mortgages: Your rate and payment never change.
- 30 Year Fixed Loan
Benefits: Lowest fixed monthly payments - 20 Year Fixed Loan
Benefits: Low fixed monthly payments - 15 Year Fixed Loan
Benefits: Lower rate than the 30 or 20 Year Fixed Loans; Pay less interest and pay your home off more quickly. - 10 Year Fixed Loan
Benefits: Lower rate; Pay off your loan and build equity faster.
Most conventional mortgage programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional mortgage can also be used to finance a primary residence, second home and investment property.
What are the Conventional Down Payment Requirements?
For Purchase transactions Conventional Mortgages require the home-buyer to put down at least 5% - 20% of the purchase price of the home. For a Refinance transaction, most lenders require at least 10% equity in the property.
What types of property are eligible?
Most conventional mortgage programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional mortgage can also be used to finance a primary residence, second home and investment property.
We excel at crafting the perfect fixed rate or adjustable rate mortgage to fit your unique goals. Reach out today to get started!
