A popular option with flexible terms for qualified buyers.
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Competitive interest rates and no upfront mortgage insurance can result in lower overall costs.
Conventional loans can offer higher loan amounts compared to government-backed loans, which is ideal for higher-value properties.
Borrowers can choose from a variety of loan terms and structures to suit their financial situation.
Unlike FHA or VA loans, conventional loans don’t have additional government fees, reducing the cost burden on borrowers.
Conventional loans include Fixed-Rate Mortgages (FRMs), Adjustable-Rate Mortgages (ARMs), and loans for specific needs, such as high-value properties or investment properties.
Fixed-Rate Mortgages (FRMs): Offer a consistent interest rate and monthly payment for the entire loan term, typically 15 or 30 years.
Adjustable-Rate Mortgages (ARMs): Start with a lower, fixed interest rate for a set period, after which the rate may adjust periodically based on market conditions.
Jumbo Loans: Designed for high-value properties, these loans exceed the conforming loan limits set by Fannie Mae and Freddie Mac.
Investment Property Loans: Used for purchasing or refinancing rental or income-generating properties, with different requirements than primary residence loans.
Conventional loans are not insured or guaranteed by the government, unlike FHA, VA, or USDA loans, which have specific requirements and benefits.
Down payment requirements vary but often range from 3% to 20%, depending on the loan program and the borrower’s financial situation.
Conventional loans generally require a credit score of at least 620, but higher scores may qualify for better rates and terms.
The most common loan terms are 15 or 30 years, but other options may be available depending on the programs we offer and your financial goals.
Yes, Conventional loans are subject to conforming loan limits, which vary by location. Loans exceeding these limits are considered Jumbo loans.
Yes, Conventional loans come with closing costs, which typically include appraisal fees, loan origination fees, and title insurance. These costs can vary by location.
PMI is typically required if the down payment is less than 20%. However, once equity reaches 20%, PMI can often be removed.
Yes, Conventional loans can be used to refinance existing mortgages, potentially offering lower rates or better terms depending on market conditions and borrower qualifications.
A Fixed-Rate loan offers a consistent interest rate and monthly payment for the life of the loan, while an ARM starts with a lower rate that may adjust periodically after an initial fixed period.
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