What is a Conventional Mortgage?
A “conventional mortgage” or “conventional loan” simply refers to any mortgage loan that is not insured or guaranteed by the federal government.
A conventional loan has terms and conditions that follow the guidelines, loan limits and underwriting standards set forth by Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation).
These loans utilize an automated underwriting system and loan approvals are based on many factors including: credit history, fico credit score, down payment assistance, property type, employment history, assets and property value.
Conforming Loan Limits
Conventional Conforming loan is 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 rate mortgage or an adjustable rate mortgage. On Q Financial, Inc. offers 10, 15, 20, 25 and 30 year mortgage rates.
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
Residential investment properties
Higher loan limits
Up to 10 financed properties
Use our free mortgage payment calculator to see your potential monthly mortgage payments.
Buying a home is a big investment, it’s important to understand everything involved and see how much you can afford.
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Latest News About Conventional Loans
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