Conventional Loans

Conventional loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac.  Because of the ever changing mortgage market and recent economic issues, many of the loans being funded within “conforming limits” are being purchased by Fannie Mae and Freddie Mac.  In other words, the guidelines, loan limits and underwriting standards have all been standardized by the agencies (Fannie Mae and Freddie Mac).  Conventional loans utilize an automated underwriting system and loan approvals are based on many factors including:  credit history, down payment, property type, employment history, assets and property value.

Conventional loans have many benefits.  They are available for purchase, refinance or “cash out” refinance transactions, and for owner-occupied properties such as primary residences or second homes, or investment properties. Conventional financing is available for single family homes and other property types up to 4-unit properties.   Loan limits vary by the area of the Country you live in and by the property type you are purchasing or refinancing.

There are many factors involved in qualifying for a conventional loan including the amount of down payment required.  Down payment requirements can range from 5% to 25% (95% loan to value to 75% loan to value) depending on the area of the country you live in, your individual financial profile, and the type of property you are purchasing or refinancing:

  • Primary Residence
  • Second Home
  • Investment Property

Conventional loans with a combined loan to value over 80% must have Mortgage Insurance (MI).  MI rates and loan interest rates for a conventional loan are based on your credit history, the type of property you are purchasing, and the amount of down payment.  Loan programs available for conventional loans include:

  • Fixed rate mortgages (10, 15, 20, 25 and 30 year terms)
  • Interest only mortgages (available in certain circumstances)
  • Adjustable rate mortgages (3 year, 5 year, 7 year and 10 year fixed periods)

Contact an On Q Financial Mortgage Consultant today to find out what options are available for you.

State Licenses

On Q Financial offers home loans for Conventional, VA and USDA financing in the following States: Arizona Lender #BK-0906866 | California Lender #603E172 | Colorado #LMB000021795 | Florida Lender #ML0701235 | Georgia Lender #22050 | Idaho #MBL-6579 | Illinois Lender #MB.6760285 | New Mexico Mortgage Loan Company #03079 | Oregon #MI-4892 | Texas #5645 | Virginia State Corporation Commission #MC-4559 | Washington Lender #CL-5645. On Q Financial provides FHA financing in Arizona, California, Colorado, Texas and Washington.

Disclamier

This web site and the information it contains are provided as a service by On Q Financial, Inc. to assist those who have questions or concerns about purchasing a home and available mortgage products. Our web site has links to sites we feel might be useful to you and which may provide services. When you link to another site, you are no longer on our site and are subject to the privacy policy of the new site. On Q Financial Inc., accepts no responsibility for the content or accessibility of the external websites or external documents linked to on this website. Readers are encouraged to research and verify information contained herein. The information on this website is not intended to substitute for advice from professional credit counselors or legal counsel. On Q Financial, Inc. cannot and does not provide legal advice to members of the public. The listing of an organization does not necessarily represent sponsorship or endorsement of the information or organization by On Q Financial, Inc.