How Process Works
About Conventional Loans
A conventional loan is a traditional mortgage type and is not insured by federal agencies like the Rural Housing Service, FHA (Federal Housing Administration), or Veterans Administration.
Conventional loans backed up by GSE (government-sponsored enterprise) programs like Freddie Mac and Fannie Mae apply to almost all property types. With various options available, it's a perfect loan for well-qualified borrowers with little debt and a solid credit score. A conventional mortgage might be right for you!
More About Conventional Loans
Conventional Loans Features
Conventional loan programs are sponsored by non-governmental financial lenders and then sold to enterprises funded by the government, such as Freddie Mac. and Fannie Mae.
Fannie Mae HomeReady
Affordable housing program for low-to-moderate-income and creditworthy borrowers. This program can finance up to 97% of the property amount.
Freddie Mac HomePossible
The best option with more credit flexibilities for low-income borrowers to own a dream home.
Competitive interest rates
Interest rates in Conventional loans rely on credit scores and down payments. But, conventional loans have the potential to have competitive interest rewarding higher credit scores.
Any types of homes
With several options available, you can purchase diverse property types such as second homes, rental properties, vacation homes, and many more with Conventional loans.
A conventional loan is ideal for finding the possibilities of your choice, whether you're looking for a 7-year term or a 10-year fixed mortgage.
Faster Loan Underwriting
Conventional loans can be secured faster than government-insured loans since they require less documentation.
Is mortgage insurance required for a conventional loan?
Conventional loans require Private Mortgage Insurance (PMI) with > 80% LTV. If you're financing more than 80% of the property's worth, you'll need to pay PMI at a certain proportion.
How many Conventional Loans can I have?
You can have up to 10 conventional loans at a time.