What Is a Conventional Loan?
A Conventional loan is not offered or guaranteed by the federal government but is available through HOMESTAR. Most Conventional loans have either fixed or adjustable interest rates.
Fixed-rate mortgages are for homeowners who desire a stable monthly interest rate and payment over the term of 30 or 15 years.
Adjustable-rate mortgages, or ARM, offer a low introductory fixed-rate term. This is an excellent option for homeowners who are planning on selling or refinancing their home in 5-7 years as it lowers your rate and payments during the introductory fixed period.
Conventional Loans Are Great for Homebuyers Who Have:
- Good credit scores
- A stable employment history
- A stable income history
- Money to put towards a down payment
Advantages of Conventional Loans:
- 97% financing
- HARP loans available
- Second home, non-owner occupied investment property financing available
Ready to find out if you may qualify for a Conventional loan?
HOMESTAR’s experienced mortgage professionals are always happy to help answer any questions you may have about Conventional loans, requirements, or the mortgage process.