Types of Conventional Loans
Conventional loans follow the lending guidelines of the Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae). These types of loans are not backed by any government agencies. Because they adhere to these rules, they are called conforming. These mortgages/loans have principle limits and have the best terms and interest rates, resulting in optimum monthly payments.
Conventional Purchase
Purchasing a home with a conventioanal loan offers several options. A big advantage is that with a down payment of 20%, you can avoid paying mortgage insurance. Types of loan options include:
- First Time Home Buyer
- Second Time Home Buyer
- Vacation Home
- Investment
Conventional Refinance
You have the option of refinancing from one type of loan into a conventional loan, thus taking advantage of better terms and lower interest rates. The savings result from the removal of mortgage insurance.
- Lower Your Payments
- Cash-Out Refinance
- Pay off Your Loan Faster
- ARM (adjustable rate mortgage) to Fixed Refinance
Conventional Purchase
Conventional loans offer several benefits, including:
- Faster process in securing a loan
- Avoiding government approval requirements and dealing directly with the lender
- Varied options for loans on investment properties, primary and secondary homes
- Variety of down-payment options
- Choice of adjustable rate mortgage (ARM) or fixed-rate mortgage
- Lower cost home loans than offered through government programs
- Elimination of mortgage insurance premiums
Find out if I qualify for a Conventional loan!
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