Fixed or Adjustable Rate

A “conventional mortgage” simply refers to any mortgage loan that is not insured or guaranteed by the federal government.


Conventional loans have terms and conditions that follow the guidelines, loan limits and underwriting standards set forth by Fannie Mae and Freddie Mac. These loans utilize an automated underwriting system and loan approvals are based on many factors including: credit history, fico score, down payment, property type, employment history, assets and property value.

Conventional Conforming loans are ideal for homebuyers with average to excellent credit who can afford a down payment of at least*3%-  5% on a 1 unit primary residence. Down payments on 2nd homes  and investment property can vary depending on how many financed properties the borrower has and  if the  property is a 2, 3 or 4 unit property.*

*At least one borrower must be a first time homebuyer

Conventional loans can have a fixed interest rate or an adjustable interest rate. On Q Financial, Inc. offers 30, 25, 20, 15, and 10-year fixed-rate options. With an Adjustable-Rate Mortgage (ARM), the interest rate stays constant for a pre-determined amount of years and then varies based on market conditions. 5/1, 7/1** and 10/1** ARMs are available.

What are the benefits of a Conventional Loan?

  • No private mortgage insurance is required with a 20% down payment
  • Multiple mortgage insurance options for LTV’s greater than 80%
  • All funds can come from a gift on a primary residence conforming loan amount
  • Financing available for single family homes and other property types up to 4-unit properties
  • 2nd homes
  • Residential investment properties
  • Higher loan limits
  • Up  to 10 financed properties

Contact an On Q Financial Mortgage Consultant today to find out if a Conventional Loan is the right option for you. At On Q we provide a “Mortgages Simplified” experience and are ready to help you get on the path to homeownership.

**provided by an On Q Financial, partner

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