Conventional Home Loans
- 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
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.
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.