What are Conventional Home Loans?
Conventional home mortgages can be used to purchase primary, secondary and investment properties. In this way conventional loans differ from other types of mortgage loans by allowing for different property uses. Guaranteed by either Fannie Mae or Freddie Mac, conventional mortgages have different criteria and are ideal for borrowers who have higher credit. Subsequently, these home loans usually require less documentation than VA Home Loans, FHA Home Loans or USDA Home Loans which makes for easier qualifying. As the credit requirements are higher for conventional mortgages they typically offer better interest rates, more flexible terms and lower insurance costs. The factors considered when applying for Conventional Home Loans are the borrower’s financial history, income, credit score and down payment compared to the sales price of the home.
The last item considered on Conventional Home Loans are the loan limits based on the county where the property is located. These are broken into conforming and high balance loan limits. For more information on a specific area please contact one of our licensed loan officers. Call today to speak to a licensed loan officer
Benefits of Conventional Home Loans?
- Freddie Mac and Fannie Mae Insured
- Primary, Second or Investment Property
- Single and Multi Family, Condo’s & Manufactured Homes
- Mortgage Insurance Options
- Lower Rates and Better Terms
- 97% Loan to Value – Conforming
- 95% Loan to Value – High Balance
Unsure if the Conventional Home Loan is the right home loan for you? Let one of Capital Home Mortgage’s licensed loan officers review your situation and provide guidance.