Conventional purchase and refinance mortgages can be fixed rate or adjustable rate mortgages, on primary residences or investment properties.
If you are planning to borrow $484,350 or less for a single-family or one to four family home, you should be looking at a conforming conventional loan. Conventional conforming loans are not made by a government entity, like FHA and VA loans, but instead follow the terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These established guidelines generally call for a minimum credit score, certain income requirements, and a minimum down payment of 3% for first time home buyers and generally between 5% and 20% down payments.
You can use a conventional mortgage to purchase your primary residence or an investment property, from one to four units.
Conventional home mortgage loans have either fixed or adjustable rates. A fixed-rate mortgage, or FRM, means that your mortgage monthly payments remain fixed for the period of the loan and typically have a term of 15 or 30 years. A shorter-term loan usually results in a lower interest rate. An adjustable-rate mortgage, or ARM, fluctuates in relation to the rate of a standard financial index; therefore, monthly payments can go up or down accordingly.
Refinancing a home mortgage can accomplish many things, including potentially lowering an interest rate and monthly payments, consolidating mortgages and debt or and ultimately restructuring the mortgage to fit the borrower’s current financial situation and goals. Terms from 5 years to 30 years are available with no prepayment penalty.
Renovation Programs allow you to purchase a property and add in some or all of the renovation costs to make your home exactly how you want it. Or, if you are a home owner, often times, a renovation or “Fixer-Upper” program, is the most effective way to finance your addition or renovation work.
Not everyone will qualify to buy a home. Contact us to find out if you do.