WHAT IS A CONVENTIONAL LOAN?
Conventional home loans are the most common type of mortgage in the country. These loans are not insured or guaranteed by the government, unlike FHA and VA loans. Lenders offer conventional loans with varying terms and interest rates, and borrowers typically need to have good credit and a stable income to qualify. Conventional loans can be used to purchase primary residences, second homes, or investment properties. They also offer the flexibility of choosing between fixed or adjustable interest rates. While conventional loans may require a higher down payment than government-backed loans, they often have lower interest rates and fewer fees. Additionally, borrowers can avoid mortgage insurance if they put down at least 20% of the home’s purchase price. Overall, conventional home loans are a popular choice for those who meet the qualifications and want to own a home without government involvement.
TYPES OF CONVENTIONAL LOANS
FIXED RATE LOANS
Offer borrowers a steady and predictable interest rate throughout the loan's duration. This mortgage option is ideal for individuals seeking stability and peace of mind.
HOME POSSIBLE LOANS
This is a mortgage program offered by Freddie Mac, which provides low down payment options and flexible sources of funds for low to moderate-income borrowers.
HOME READY LOAN
This is a mortgage program offered by Fannie Mae, which provides flexible underwriting requirements and low-down payment options for low to moderate-income borrowers.
MANUFACTURED HOME LOANS
A manufactured home loan is a type of mortgage designed for homes constructed in a factory and then transported to their final location, offering financing options specifically tailored to these homes, including both purchase and refinance loans.
RENOVATION LOANS
A renovation loan is a specialized type of mortgage that includes funds for home improvements and repairs, allowing borrowers to finance both the purchase or refinance of a property and the cost of renovating it within a single loan.
