What are Conventional Loans?

Conventional loans, not government-insured, offer better rates and terms.
Ideal for borrowers with excellent credit, 5-20% down payment, reasonable debt, and reliable income

Most Common Types of Conventional Loans

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.

  • 5 Year Fixed Loan

    Benefits: Lowest rate; Pay off your loan and build equity the fastest

Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.

  • 3/1 ARM

    Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years

  • 5/1 ARM

    Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years

  • 7/1 ARM

    Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years

What are the Conventional Down Payment Requirements?

For Purchase transactions Conventional Loans 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 loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can also be used to finance a primary residence, second home and investment property.

Our Process

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Complete your secure online application quickly and easily with no paperwork, no pressure.

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We will review your information, match you with the best loan options, and give you a clear idea.

Close Smoothly with Our Support

From approval to closing, our team is with you in every step ensuring a stress-free experience.

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FAQs

What is the difference between pre-approval and pre-qualification?

The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qual letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.

When does it make sense to refinance?

Usually, people refinance to save money either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation: Calculate the total cost of the refinance Calculate the monthly savingsDivide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing. Since refinancing is a complex topic, consult a mortgage professional.

What is a rate lock?

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.

What is the difference between a mortgage broker and a lender?

A mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender "underwrites" the loan, which means deciding whether or not you are an acceptable risk.

Let’s Turn Your Homeownership
Dream Into Reality

Start your journey today by getting a free quote, It's fast, simple, and
connects you with a dedicated loan expert ready to guide you every
step of the way.

Let’s Turn Your Homeownership
Dream Into Reality

Start your journey today by getting a free quote, It's fast, simple, and connects you with a dedicated loan expert ready to guide you every step of the way.

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