Conventional Mortgage loans

Conventional loans are loans that are currently sold in the market or meet Fannie Mae’s and/or Freddie Mac’s funding criteria. Conventional loans are the standard loans you hear about when buying a home. They usually require a down payment and come with fixed or adjustable interest rates. There is usually a variety of programs out there, making conventional loans very competitive. Conventional loans can be either a fixed rate mortgage or adjustable rate mortgage. Conventional mortgages generally require higher down payments than FHA & VA mortgages. For more information about conventional loans, click here.

Some of the key benefits are:

• Competitive Rates: Conventional mortgages have a wide variety of fix rate mortgage programs and adjustable rate mortgage programs giving the home owner many choices to match the programs that best meets their needs. Based on credit score, conventional mortgages generally carry some of the lowest mortgage rates in the market.
• Down Payment: Although conventional mortgages generally require more money down, mortgages can be found with as little as 5% down payment. Mortgage insurance companies generally insure conventional mortgages with less than 20% down payment. Underwriting requirements are usually tightened however, could be an excellent alternative than putting down a large down payment.