Home Loan Programs

Conventional Home Loans

Quick Facts

  • 5% Min Down Payment
  • Loan under $417,000
  • Low Closing Costs
  • Flexible Terms
  • Fixed & Adjustable Rates
  • May require Mtg Insurance

Have good credit and cash for a down payment? Then a conventional loan, the most common type of mortgage, may be right for you. They are not insured by any government program such as FHA and VA. Generally, conventional loans have better interest rates than non-conventional loans and can be a great option for those with a 20% down payment.

However, even if the borrower does not have a 20% down payment, it is still possible to get a mortgage with a 5% down payment per Fannie Mae and Freddie Mac guidelines.

“Conventional” just means that the loan is not part of a specific government program. Conventional loans typically cost less than FHA loans but can be more difficult to get.

There are two main categories of conventional loans:

Conforming loans have maximum loan amounts that are set by the government. Other rules for conforming loans are set by Fannie Mae or Freddie Mac, companies that provide backing for conforming loans.

Non-conforming loans are less standardized. Eligibility, pricing, and features can vary widely by lender, so it’s particularly important to shop around and compare several offers.

Frequently Asked Questions

1Does OVM Financial offer conventional loan options?
Absolutely. OVM Financial offers a wide variety of conventional loan products.
2Do all Conventional Loan Require Mortgage Insurance?
Mortgage insurance helps you get a loan you wouldn’t otherwise be able to. If you can’t afford a 20 percent down payment, you will likely have to pay for mortgage insurance. You may choose to get a conventional loan with private mortgage insurance (PMI), or an FHA, VA, or USDA loan
3What types of special circumstances would fit into a Conventional Program?
Niche programs for mainstream borrowers with unusual circumstances. These can include:
Loans for properties with non-standard features (such as more than 10 acres of land, properties with agricultural income, or properties that are difficult to appraise).
Loans for affluent customers with tricky finances, such as self-employed borrowers, or newly graduated doctors.
4Are these loans for borrowers with poor credit?
Some loans in this category are intended for borrowers with poor credit. These loans tend to have high rates and may contain risky features. These can include:
Loans that allow for minimal documentation of your income.
Loans that allow you to pay only the interest or allow your loan balance to increase.

Loan Program Resources



Download our Conventional Loan Fact Sheet

Download Loan Fact Sheet

Calculator

Home Value $
Monthly
Total
Downpayment (%)
0%
Loan Term (yrs)
30
Interest Rate (%)
1.5%