Loan Option
Conventional loans are not backed by the government, which means they typically have stricter qualification requirements but can offer more flexibility in terms of loan terms and interest rates.
No-impact credit check. No commitment.
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, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.
Rate/Term RefinanceFixed Rate Mortgages: Your rate and payment never change.
Lowest fixed monthly payments
Low fixed monthly payments
Lower rate than the 30 or 20 Year Fixed Loans; Pay less interest and pay your home off more quickly.
Lower rate; Pay off your loan and build equity faster.
Lowest rate; Pay off your loan and build equity the fastest.
Adjustable Rate Mortgages: Your After the initial period your interest rate can change once a year.
Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years
Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years
Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years
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.
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.
