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Conventional
Loan
There is Flexibility in the Conventional Loan
Conventional mortgages are versatile loans that cater to various financial situations, whether you’re purchasing a primary home, second home, investment property, or even a manufactured home. They offer both fixed-rate and adjustable-rate options, allowing you to choose the best fit for your financial goals, whether short-term or long-term.
Key Benefits
- Available for primary homes, second homes, investment properties, and manufactured homes.
- Down payments as low as 3%.
- Competitive interest rates.
- Variety of loan terms and types to suit different needs.
Fixed-Rate Mortgage
With a Fixed-Rate Mortgage, your interest rate and monthly payments remain constant for the entire loan term. Fixed-rate loans are ideal for those who plan to stay in their homes long-term.
- Available in 15, 20, and 30-year terms.
Pros and Cons of an Fixed-Rate Mortgage
Pros:
- Rate stability: Interest rate stays the same throughout the loan, providing predictable payments.
- Long-term planning: Easier to budget since the monthly payments remain constant.
Cons:
- Higher initial rates: Typically comes with higher interest rates compared to ARMs.
- Less flexibility: You may miss out on savings if interest rates drop during the loan term.
Adjustable Rate Mortgages (ARM)
ARMS offer a fixed interest rate for an initial period (e.g., 3, 5, 7, yr 10 years), after which the rate adjusts annually. ARMs can be beneficial if you plan to live in your home short-term or if you expect rates to decrease.
- ARM options include 3/1, 5/1, 7/1, and 10/1 terms.
Who It’s For
- Buyers of primary homes, second homes, investment properties, or manufactured homes.
- Individuals looking for flexible loan options with both fixed and adjustable rates.
- Borrowers with a minimum credit score of 620, in most cases.
Pros and Cons of an ARM
Pros:
- Lower initial rates: Typically offers lower interest rates at the beginning of the loan term.
- Potential savings: If rates stay low, borrowers can save money over time.
- Flexibility: Good for buyers who plan to sell or refinance before the rate adjusts.
Cons:
- Rate uncertainty: Rates can increase after the initial fixed period, raising monthly payments.
- Complexity: Requires more attention to market conditions and loan terms.
How to Apply
Get prequalified for a conventional loan today or speak with our team for more information on eligibility and benefits.
For a quicker start, complete the form on this page and start your pre-approval process today!
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Conventional Loan FAQs
Fixed-rate mortgages have stable payments, while ARMs start with a fixed rate that adjusts periodically.
Down payments can be as low as 3%, depending on eligibility.
Yes, conventional loans are available for second homes and investment properties.
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