The Conventional Mortgage

The Conventional Mortgage

A Conventional Mortgage is simply any mortgage loan that is not insured or guaranteed by the federal government. Conventional Mortgages typically require a higher down payment, usually 5%–20%. They also have higher income and credit score requirements than government loans. Conventional Mortgages can have a fixed interest rate or an adjustable interest rate. Typical fixed-rate loans have a term of 15 or 30 years. With an Adjustable-Rate Mortgage (ARM), the interest rate stays constant for a term and then fluctuates based on market conditions.

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Types of Conventional Loans

• Conventional Purchase Loan

• Conventional Refinance Loan

• Conventional Cash Out Refinance

• Home Possible®

• HomeReady®

• HomeStyle® Renovation Mortgage

• CHOICERenovation Mortgage

• Conventional 97% No MI

• Conventional Adjustable-Rate Mortgage

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Conventional Features & Qualification

• Buyer has immediate equity in the property

• No private mortgage insurance is required with a 20% down payment

• Lower closing costs and fees

• Repayment terms are generally more favorable

• Closing costs and fees may be included in the loan

• Fewer bureaucratic hurdles, making the loans quicker to process

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• Who can benefit?

• First-time or repeat homebuyers

• People with good credit scores and money to put down

• Someone who wants a low down payment.

• Homebuyers looking for a loan program with no private mortgage insurance (PMI) options.