Conventional Home Loan & Conventional Mortgage – Your Gateway to Homeownership
Welcome to BrianBeland.com Conventional Home Loan & Mortgage page! Here, we aim to provide you with all the information you need to understand how a conventional home loan can help you step onto the property ladder and secure your dream home.
What is a Conventional Home Loan? A conventional home loan is a mortgage that is not insured or guaranteed by any government agency, such as the FHA, VA, or USDA. Instead, it adheres to the guidelines set by Fannie Mae and Freddie Mac, two government-sponsored enterprises that play a significant role in the U.S. mortgage market.
Types of Conventional Home Loans:
- Fixed-rate mortgage: This is the most common type of conventional loan, where your interest rate remains the same for the life of the loan.
- Adjustable-rate mortgage (ARM): With an ARM, your interest rate may change periodically, typically in relation to an index, and payments may go up or down accordingly.
Benefits of a Conventional Home Loan:
- Potentially lower interest rates for borrowers with good credit
- No private mortgage insurance (PMI) required with a down payment of 20% or more
- Flexibility in terms of loan terms, typically ranging from 10 to 30 years
- Available for a wide range of properties, including primary residences, second homes, and investment properties
How to Qualify for a Conventional Home Loan:
- A credit score of 620 or higher
- A debt-to-income ratio of 43% or lower
- Stable income and employment history
- A down payment of at least 3% (though a higher down payment can provide more favorable terms)
At BrianBeland.com, we are committed to helping you navigate the world of conventional home loans and mortgages, ensuring you have all the information you need to make an informed decision. Contact us today to speak with one of our experienced loan officers and take the first step towards securing your dream home!