What is a Conventional Loan?
A conventional loan is also known as a conventional mortgage. A Conventional loan means the loan is not insured or guaranteed by the Federal Government. For example, Veterans Affairs and the Federal Housing Agency guarantee loans that are approved using guidelines set by the respective agency. Whereby, conventional loans typically follow Fannie Mae or Freddie Mac guidelines.
The two main types of conventional mortgages are Conventional Fixed Rate Loans and Conventional Adjustable Rate Loans (ARM loans). First Savings Mortgage offers both loan types.
The loan periods can vary for conventional mortgages, and the amortization terms can be customized as well by our loan experts depending on your needs.
When choosing between a Conventional Loan and a Government backed loan, you want to keep in mind that Conventional loans are usually ideal for borrowers with excellent credit; though programs for average credit exist. Also, conventional loans typically have more provisions, than, for example an FHA loan. With the help of our expert loan officers, we'll be able to fit you in the right conventional mortgage for you.
A conventional loan may be the right fit for you if you are in the need for the following:
- A low down-payment solution
- No mortgage insurance options
- First and second mortgage combination loans
- Refinance loans that offer cash out, rate reduction, and shorter amortization options
- Money-saving solutions