Conventional Home Loans Alaska

Conventional Loans also known as Conforming loans are used to purchase or refinance a home. “Conforming loans” are mortgages that follow the rules set by Fannie Mae and Freddie Mac and are bought from lenders and sold to investors by government-backed firms. This means that lenders can give more money to buyers who qualify. Conventional loans cost less than FHA loans, but it’s harder to get approved for them. Conventional mortgages are used for a big part of buying and refinancing homes, and many mortgage lenders offer them.

They are the most common kind of home loan and are given out by private lenders who have to follow rules set by Fannie Mae and Freddie Mac.

Conventional loan types
Loans that fit the rules are called conforming loans.
Conforming loans are mortgages that meet the limits set by the FHFA and other rules set by Fannie Mae and Freddie Mac. For loans to be sold to Fannie Mae and Freddie Mac, they have to follow the rules. This gives the mortgage market more money and stability in the long run.

Conforming loans are not the same as conventional loans, but all conventional loans are conforming loans. For a conventional-conforming loan, you need a FICO score of at least 620. The required payment is between 3 and 5% of the price of the item. If the borrower puts 20% down, private mortgage insurance must be added to the loan (PMI).

Loans that don’t fit the rules
Non-conforming loans are mortgage loans that don’t meet the rules set by Fannie Mae and Freddie Mac, two government-backed companies that invest in mortgage loans. These standards are set by the Federal Housing Finance Agency (FHFA). Non-conforming loans are jumbo loans that are bigger than the conforming loan limit.

FHA mortgages
An FHA loan is a loan that is backed by the Federal Housing Administration (FHA). The Department of Housing and Urban Development, which is part of the government, runs the Federal Housing Administration (HUD). The goal of FHA loans is to help people with low and moderate incomes get a mortgage.

One of the best things about an FHA loan is that it lets people with credit scores of 580 or higher make a down payment of as little as 3.5%. Also, closing costs for FHA loans are often lower than those for regular loans.

To get an FHA loan, lenders must meet the requirements set by the agency. Once the loan is approved, the FHA insures it to protect the lender in case the borrower doesn’t pay the mortgage.

VA Home Loans
VA home loans are made by private lenders like banks and mortgage companies, but they are backed by the U.S. Department of Veterans Affairs (VA). If the borrower doesn’t pay back the loan, the VA will cover some of it.

VA home loans are meant to help Servicemembers, Veterans, and surviving spouses who meet certain requirements become homeowners. The program offers a home loan guarantee and other services related to housing to help borrowers buy, build, fix, keep, or change a home for their own use.

Most of the time, the terms of a VA home loan are better than those of a loan from a private lender. Those who are eligible can apply for a VA home loan if they have a Certificate of Eligibility (COE) and meet credit and income requirements.

Home loans backed by the USDA
A USDA-guaranteed home loan, also called a USDA loan or a Rural Development loan, is a type of mortgage that doesn’t require a down payment and is backed by the U.S. Department of Agriculture (USDA). These loans are backed by the government and can be used to buy, build, fix, or refinance a property. They are made for people and families living in rural areas of the country who have low to moderate incomes.

To get a USDA loan, the property must be in an eligible rural area, and the borrower’s income must meet certain requirements. USDA loans can only be gotten from lenders who have been approved by the USDA.

Jumbo Loans
Jumbo home loans, which are also called non-conforming loans, are loans that are bigger than what Fannie Mae and Freddie Mac allow. Most U.S. home loans are bought and packaged by these government-backed companies and sold to investors.

You can get a jumbo mortgage for your main home, a second home or vacation home, or an investment property. They come with different terms, like fixed-rate and adjustable-rate loans. Borrowers must have a low ratio of debt to income and a strong credit score. Because jumbo loans are bigger, they usually have a higher interest rate and stricter underwriting rules than regular mortgages. They also usually require a bigger down payment.

Request a traditional loan
Buying a house is a big deal, and Capital Home Mortgage can help make the process as easy and enjoyable as possible. We are a full-service mortgage company with a wide variety of mortgage products and a promise to provide the best customer service in the industry.

Call us at (907) 531-5048 to talk to one of our Home Loan Specialists and get started on your way to becoming a homeowner!