Conventional Loans

Get Started

What are Conventional Loans?

Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations and reliable monthly income. Down payment can go as low as only 3%!

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.

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

3/6 ARM
Fixed Rate for 3 Years, Adjustable Rate every 6 months for the remaining 27 years
5/6 ARM
Fixed Rate for 5 Years, Adjustable Rate every 6 months for the remaining 25 years
7/6 ARM
Fixed Rate for 7 Years, Adjustable Rate every 6 months for the remaining 23 years

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.

Looking for a Conventional Loan?

Get Started Now