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Conventional Loans

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 is 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’s credit score should be at least 620.
  • 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?

The expert lenders at Hometown Equity Mortgage make it easy. Get a mortgage quote by clicking on the banner below or call us and we’ll be happy to discuss your needs at: (855) 563-4836


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*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.