Conventional Mortgage

If you are looking to borrow $484,350 or less for a single family loan, a conforming conventional loan is the best choice. Unlike FHA and VA loans, conventional loans are not made by a government entity. Instead, these loans follow the guidelines of Fannie Mae and Freddie Mac and call for a minimum credit score, certain income requirements, and a minimum down payment which is usually between 3% and 20%. Conventional loans have very clear guidelines and generally, have the most rapid qualification process.

Conforming conventional home loans can have either fixed or adjustable rates. Fixed rate loans usually last between 10 and 30 years and the payments remain the same throughout the life of the loan, however sometimes specialized loan terms can be created upon request. Shorter fixed rate loans usually result in a lower interest rate. Adjustable rate mortgages (ARM) vary in relation to the market index resulting in increases and decreases in your monthly payment.