Conventional loans are mortgages that are backed by Fannie Mae or Freddie Mac. These Government Sponsored Enterprises were initially created after the Great Depression to help banks provide financing for home mortgages to create higher levels of home ownership.
Conventional loans offer borrowers with great benefits when purchasing a home or refinancing an existing mortgage.
Conventional loans allow for as little as 3% down payment.
If you make a down payment of 20% or more, no Mortgage Insurance is required.
If mortgage insurance is required, it will automatically be canceled when the homes loan to value reaches 78%.
Conventional loans can be used to finance Primary Homes, as well as Second Homes, and even Investment Properties.
Conventional loans are offered in a wide range of Loan Terms, including fixed rates from 10 Years to 30 Years. They can even accommodate custom loan terms, allowing borrowers to refinance and not add additional years to their current mortgage.
Borrowers are allowed to have multiple conventional loans at one time.
Conventional loans allow for higher than normal loan amounts in high cost areas, helping borrowers avoid “Jumbo” loans, which are typically more difficult to qualify for.
There are many benefits to purchasing or refinancing using Conventional home loan options, to learn more please call or apply online today with Ideal Home Loans!