Whether you’re purchasing a home or refinancing your existing home loan, the most common type of mortgage is known as a Conventional loan (also known as a conforming loan). Conventional loans are home loans for up to $424,100 that are typically backed by large institutional investors you may have heard of, such as Fannie Mae and Freddie Mac.
In order to qualify for a Conventional loan, you typically have to meet a down payment requirement (those amounts can vary), demonstrate that you have good but not perfect credit, that you’re employed, and that your monthly income is sufficient to meet your other monthly debt obligations such as car loans, student loans, and credit cards.
There are many types of Conventional loans, including Fixed Rate Conventional loans that are available with loan terms of either 30, 20, 15 or 10 years.
Adjustable Rate Conventional loans are also available with interest rates that remain the same for 5, 7 or 10 years, and then adjust each year thereafter.
Sound a little complicated? Well, you’ve come to the right place. James B. Nutter & Company has been helping homeowners just like you for over 65 years. Our experienced and knowledgeable loan officers are just a phone call away and can answer all of your questions.