What is a conventional loan?
Conventional loans are often referred to as “conforming loans,” because they meet the guidelines set by Freddie Mac and Fannie Mae. The most notable guideline is that the maximum loan amount is $484,350 (except in high-cost areas where higher limits may be available).
Flexible Terms
With fixed rate (10, 15, 20, 25, and 30 year options) and fixed-period ARM (adjustable rate mortgage) (3/1, 5/1, 7/1, and 10/1) options, you can choose the payment and term that works best for you.
Benefits of a Conventional Loan
- You can buy a primary residence, second home, or rental property with most conventional loans
- Down payments are as low as 3% with our traditional conventional options
- You pay no monthly mortgage insurance with a down payment of 20% or more.
- No Mortgage Insurance Programs available
- Mortgage insurance costs less than with government loans and may be cancelled when your home equity reaches 20%