Looking for a Conventional Loan?
Check out the information below and let us know if we can help
What is a Conventional Loan?
Here at Millenial Mortgage, we believe everyone should have the opportunity to achieve the American Dream of Home Ownership and a Conventional Loan is one of the easiest ways to do just that.
A conventional mortgage refers to any loan that is not insured or guaranteed by the federal government, as opposed to government-insured loans including Federal Housing Administration (FHA), U.S. Department of Veteran Affairs (VA) and U.S. Department of Agriculture (USDA). Conventional mortgages (whether conforming or not) typically have a slightly higher down payment than government loans; however, this loan option normally provides more flexibility with fewer restrictions.
Conventional Loan Highlights
- Generally, requires a higher down payment than other loans
- 3% minimum down payment for those borrowers who have not owned a home in the last 36 months; 5% minimum down payment for purchases thereafter
- Fixed-and adjustable-rate mortgages
- Mortgage insurance is required for all loans that have less than 20% down; however, it can be removed once your balance reaches 78% or a new appraisal is ordered and 20% equity is established
- Must conform to established guidelines set by Fannie Mae and Freddie Mac
- A conforming loan must meet the established conforming County Loan Limit or is considered non-conforming; a Jumbo loan
- Buying out the Mortgage Insurance is an option
- Lower interest rates for borrowers with good credit
- Can be used to finance 2nd homes; investment properties; single family home and condo
Loan Programs
