Conventional Mortgages

Fixed and Adjustable Rate Products meeting GSE underwriting requirements. Offer greater flexibility for buyers seeking loans under $417,000 who can afford higher down payments. Fannie Mae and Freddie Mac recently released a 3% down payment option, allowing buyers choosing conventional loans to get the benefits of a low down payment.

Conventional Mortgages

A conventional mortgage is not insured or guaranteed by the federal government, unlike government-backed loans such as FHA and VA. Conventional mortgages can be fixed rate or adjustable rate, including hybrid ARMs. 

This mortgage program also offers a 100% gifted down payment option AND a Seller and realtor concessions towards closing costs

Pros of Conventional Mortgage

  1. Low down payment – as little as 3% with a high credit score!
  2. 100% gifted down payment permitted.
    3. Seller and realtor concessions toward closing costs permitted (up to a certain amount and based on down payment).
  3. Conventional loans tend to be more competitive compared to other loan programs, making the buyer’s offer stronger in the eye of the seller.
  4. Includes a mortgage insurance premium that will automatically drop at 80% loan to value.
  5. Both fixed and adjustable rate mortgages available.
  6. Choose between 10, 15, 20, 25, and 30-year fixed rate terms.
  7. Co-signer(s) permitted!

Fixed Rate Mortgages

A fixed rate mortgage is a mortgage that has the same interest rate (“fixed) for the entire life of the loan. The major benefit of a fixed rate mortgage is that the interest rate and monthly payment will be the same throughout the loan term, which means less financial stress and uncertainty for the buyer. This type of loan can be especially beneficial when market interest rates are in flux.

This type of mortgage most commonly comes with 15 or 30 year terms, although there are other shorter-term options available.

Adjustable Rate Mortgages (ARMS)

An adjustable rate mortgage is a type of mortgage with an interest rate that is not fixed. This means the interest rate on the loan can change periodically after the initial fixed rate period, usually each year. A changing interest rate will affect the buyer’s monthly payment. A benefit of an ARM is that buyers can potentially pay less in interest if market interest rates are expected to fall.

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