Conventional Loan Lenders
Understanding what a conventional loan is can help you avoid unnecessary time and expense as you apply for a mortgage. Hometown Equity Mortgage are conventional home loan lenders and are here to help our friends and neighbors in Missouri navigate the maze of information and find the best conventional mortgage loan – quickly and with the best rates.
What is a Conforming and Non-Conforming Conventional Home Loan?
Unlike a Federal Housing Administration loan, a conventional loan is not backed by any federal agency and most loans require between 5% and 20% down. We at Hometown are here to help you go through the maze of information to help you obtain a “conforming” or “nonconforming” conventional loan. Here are some key points:
- Most conventional mortgages have either fixed or adjustable interest rates
- Typical fixed interest rate loans have a term of 15 or 30 years while a shorter term loan usually results in a lower interest rate
- Adjustable-rate mortgages (ARMs) fluctuate in relation to the rate of the standard financial index. Monthly payments can go up or down accordingly.
- A “conforming” conventional loan is generally under $417,000 or less for a single family home. These limits can vary in pricier parts of the USA.
- Loans above the lending limits set by Fannie Mae and Freddie Mac are called nonconforming or Jumbo loans.
- If you make a down payment of 20% or more you generally will not be required to carry mortgage insurance
- Conventional mortgage lenders don’t place limits on the amount they’ll lend
Do I Qualify*
To qualify for a conventional home loan there are established guidelines which can change frequently. Here’s some of the areas to qualify in:
- Borrower credit scores should be at least a 620 credit score
- Minimum down payments as low as 3%
- Chapter 13 Bankruptcy – You may have to wait 2-4 years to qualify
How Do I Get Started?
Hometown Equity Mortgage makes it easy. Apply online to see if you qualify by clicking on the banner below or call us and we’ll be happy to discuss your needs at: (855) 563-4836
*Disclaimer: Certain restrictions and credit approval apply; not all applicants will qualify. All approvals are subject to underwriting guidelines which include but are not limited to: acceptable credit & income history, current homeowners insurance, property value, debt to income ratio, etc. Minimum & maximum loan amounts apply. Please contact Hometown Equity Mortgage for further details.