A conventional loan is a mortgage that is not backed or insured by the government, including all Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs. Instead, these loans are purchased by Fannie Mae or Freddie Mac also referred to as GSE’s (Government Sponsored Entities) and all lenders must adhere to their guidelines.
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Conventional Mortgage Options
Is it right for you?
Conventional mortgages are ideal for borrowers with good or excellent credit and those who have a stable job and consistent income history as well as borrowers looking for investment properties.
Is it right for your situation?
Primary residence, second homes and investment properties, single family and 2-4 unit properties, condos and townhomes, Planned Unit Developments (PUDs), and manufactured double-wide homes; loan amounts up to $453,100.
Features and Benefits
- Down payments as low as 3%
- Satisfactory credit required or a higher down payment
- Up to 3% seller contribution allowed for closing & prepaid closing costs (up to 6-9% for 10%+ down payment)
- No required upfront mortgage insurance premium’s
- Flexible mortgage insurance options & removal at 20% down payment / equity
- Standard debt to income limits (Non-Occupant borrowers are allowed)
- Streamlined application and faster processing times; generally, requires less documentation
- Reduced appraisal guidelines