Why should you consider a conventional loan?
People looking to actualize their homeownership dream have several lending options at their disposal. As an experienced mortgage broker, we are here to ensure that you get the best experience in terms of a smooth application process, friendly rates and fees, and reasonable repayment, among other things. For those who may not be able to avail themselves of loans that are insured by a federal agency such as FHA, VA, and USDA, conventional loans offer an option that guarantees the actualization of your homeownership plan.
A conventional loan is a kind of mortgage loan that is not guaranteed by the government. Instead, it is backed by private lenders with the insurance paid by the borrower. This type of homeownership financing is more common than government-guaranteed financing. Statistics indicate that over the last three years, conventional loans were used in financing in more than 70% of all the new home purchases, making them the most available home financing option.
Even though conventional loans are riskier compared to government-financed options, they offer a prospective homeowner more flexibility.
Conventional loans can broadly be categorized into two types -conforming and non-conforming conventional loans.
For a person to be considered for a conforming conventional loan, Fannie Mae and Freddie Mac requirements must be met. These requirements include the loan limit, which may depend on the location of the property. Non-conforming conventional loans, on the other hand, are not bought by Fannie Mae or Freddie Mac as they do not meet the amount requirements, instead, they are funded by lenders. Other types of conventional loans include ARMs, fixed rates, and jumbos.
As an experienced Upstate and Western New York mortgage broker, we will advise you accordingly on the type of conventional loan that you qualify for. We help clients like you with the documentation process, as well as other requirements that are needed to make your home buying process easy.
Benefits of a conventional loan:
The popularity of conventional loans emanates from the following features which make the mortgage process smooth.
- Low-interest rates are charged on these loans.
- The loan processing is fast, more so when you use a mortgage broker like HAUS Capital.
- There are diverse down payment options; one can start as low as 3% of the home price.
- Flexible mortgage terms ranging from 10 to 30 years.
- Reduced private mortgage insurance.
With us, getting a conventional loan is easy; we have the experience, necessary information, and proper understanding of the market. Let us help you make the dream of owning a home a reality.