A Conventional Mortgage Loan is a traditional program for loans that are not guaranteed by the government.
These loans can have a fixed or adjustable rate. Fixed interest rate mortgage loans have a term of 10, 15, 20 or 30 years. Adjustable-rate mortgages, or ARMs, are mortgage loans in which the rate can change based upon a price index such as Libor. Conventional loan amounts $647,200 or less are considered Conforming Conventional Loans. These loans typically require a 5% minimum down payment (however there are benefits to putting more down.) First time home buyers only need to put down 3%. The minimum credit score is 620.
Loan amounts over $647,200 are considered Jumbo Mortgage Loans. These loans typically require a 10% minimum down payment, a minimum credit score of 680 and have higher rates than Conforming Conventional Loans.
Contact HomeWay Mortgage today and let us start the loan process for you!