Conventional Loans

I offer a variety of conventional lending options designed to fit different financial needs and homebuyer situations. Conventional loans are typically not backed by the government (like FHA, VA, or USDA loans) and are offered through private lenders. These loans often come with competitive interest rates, but they may require a larger down payment and stricter credit requirements compared to government-backed loans. Here’s a look at the conventional lending options I can help you explore:

1. Conventional Fixed-Rate Mortgages

This is one of the most common types of conventional loans. With a fixed-rate mortgage, your interest rate stays the same for the entire term of the loan, making your monthly payments predictable. It’s a great option if you prefer stability and plan to stay in the home for the long term. Fixed-rate loans are typically offered in 15, 20, or 30-year terms.

Benefits:

  • Predictable monthly payments

  • Long-term stability with a fixed interest rate

  • Ideal for long-term homeowners

2. Conventional Adjustable-Rate Mortgages (ARMs)

An ARM offers a lower initial interest rate for a specific period (usually 5, 7, or 10 years), after which the rate adjusts periodically based on market conditions. This type of loan can be beneficial if you plan to sell or refinance before the rate adjusts, allowing you to take advantage of the lower initial rate.

Benefits:

  • Lower initial interest rate compared to a fixed-rate mortgage

  • Potential savings if you only plan to stay in the home for a few years

  • Adjustments typically happen after a set period (e.g., 5, 7, or 10 years)

3. Conventional 97% Loan-to-Value (LTV)

This loan allows homebuyers to put down as little as 3% of the home's purchase price. It’s ideal for first-time homebuyers or those who may not have the funds for a large down payment but still want the benefits of a conventional loan (such as avoiding PMI after reaching 20% equity).

Benefits:

  • Low down payment requirement (as low as 3%)

  • Available to both first-time and repeat homebuyers

  • Competitive interest rates compared to other low down payment options

4. Conventional Jumbo Loans

If you’re purchasing a home that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA) for conventional loans, you may need a jumbo loan. These loans are used for higher-priced properties and come with slightly higher interest rates and more stringent qualification requirements due to the larger loan amounts.

Benefits:

  • Financing for higher-priced homes

  • No maximum loan limit (within your lender's guidelines)

  • Can be used for primary residences, second homes, or investment properties

5. Conventional HomeReady and Home Possible Loans

These are specialized conventional loan programs designed for low- to moderate-income borrowers. They offer flexible down payment options (as low as 3%) and may have more relaxed credit score requirements. They also allow for additional sources of income, such as rental income or boarder income, to help with qualification.

Benefits:

  • Low down payment options (as low as 3%)

  • Flexible income and credit requirements

  • Ideal for low- to moderate-income borrowers

6. Conventional Refinance Loans

If you already own a home and are looking to refinance, a conventional refinance loan can help you lower your interest rate, shorten your loan term, or tap into your home’s equity to fund renovations or pay off debt. With conventional refinances, you may avoid the upfront costs of government-backed refinance programs, and if you have more than 20% equity, you can avoid PMI.

Benefits:

  • Lower interest rates or shorter loan terms for cost savings

  • Cash-out refinancing for home improvements, debt consolidation, or other needs

  • No upfront mortgage insurance costs if you have 20% equity

7. Conventional Investment Property Loans

For buyers interested in purchasing rental properties or other investment properties, conventional loans are also available. These loans typically require a larger down payment (usually 15-25% of the property's value) and may come with higher interest rates than primary residence loans due to the increased risk associated with investment properties.

Benefits:

  • Financing for investment properties

  • Competitive rates for well-qualified buyers

  • Rental income can help offset costs

With conventional loans, I can help you navigate the various options and find the one that best fits your needs, whether you're buying a new home, refinancing, or investing in a property. Conventional loans offer flexibility in terms of down payments, loan limits, and repayment options, giving you a range of choices for your home financing. Let’s discuss your goals and find the right conventional loan for you

Your new home awaits.