Conventional financing refers to a mortgage that is purchased by Fannie Mae or Freddie Mac and is not guaranteed by the federal government, unlike other programs such as FHA and VA Financing. Conventional loans are completely made in the private sector without any government involvement. You can use conventional financing to purchase or refinance single family to four family homes.
Borrowers with good or excellent credit.
Borrowers who are able to put a minimum of 3% down.
Fixed-rate: You’ll have the same interest rate and monthly payment for the entire repayment term, even long-term financing options such as a 30-year loan.
Adjustable-rate (ARMs): You’ll start off with a lower interest rate than the fixed-rate loan, but it will be adjusted from time to time, causing monthly payments and interest to change over time.
If you are able to make a down payment of 20% or more, choosing a conventional loan can allow you to avoid paying mortgage insurance completely (an average savings of $1000/year). However if your downpayment is less than 20%, you’ll likely still be required to pay for PMI (Private Mortgage Insurance) with conventional financing. This type of loan also typically has a shorter processing time and fewer hurdles than a government-backed loan, and can save you time in the home buying process.
Begin your home loan process today! Our mortgage advisors are standing by. Have questions? Give us a call! One of our specialists will be happy to answer all of your questions and get you started with a great low rate today!
LET'S GET STARTED!
© 2023 Sedemil Mortgage Services, LLC | Miami Web design by Silva Heeren.