Conventional Loan

A traditional, fixed rate mortgage.

For many homebuyers, a conventional loan holds the key.

Home Loans Conventional Loan

Wondering which type of mortgage is best for you? Many homebuyers prefer conventional mortgages because they offer more flexibility and the costs accompanying the loan are often less expensive.

Conventional loans are not insured or guaranteed by the government. Instead, the loan is backed by private lenders. This can make them harder to qualify for, but, if you have a solid credit score and little debt, a conventional loan is a great option. Even if that’s not the case, there is still a chance you can qualify.

Another reason people like conventional mortgages is because they allow you to purchase a more expensive home. There are two types of conventional loans: conforming and non-conforming. In order to be considered conforming, the loan must meet the guidelines set by the Federal Housing Finance Agency (FHFA). We can let you know what the maximum is in your neighborhood.

May offer lower interest rates
No private mortgage insurance (PMI) with 20% down payment
Shorter-term PMI with less than 20% down
More expensive home purchases possible
May require less time to process

Conventional

Conventional loans conform to Fannie Mae/Freddie Mac guidelines and are a financial agreement between the lender and the borrower. Conventional loans are not government-backed so they may be harder to qualify for than FHA loans, but they typically have lower costs.

FHA

An FHA loan is administered by the Federal Housing Administration (FHA) and is easier to qualify for than a Conventional loan. With the FHA guaranteeing the loan, lenders are more willing to approve applications, but FHA loans are usually more costly.

Apply For a Conventional Loan

Easy online application.

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Frequently Asked Questions

Can you refinance with a conventional loan?

The answer is yes. You can refinance with a conventional loan and lower your current mortgage payment, change terms, or convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. The two most important things you’ll need to refinance are a good credit score and a successful appraisal of your house. A rate and term refinance could deliver big savings.

What does it mean to be pre-qualified?

A simple first step in the mortgage process is getting pre-qualified. Lending Hand can pre-qualify you over the phone or online. We’ll go over your information and discuss your goals. Shortly thereafter you’ll get your pre-qualified amount — the amount for which you might expect to be approved for a loan.

How do you qualify for a loan?

When you first speak with a loan officer, they’ll just want to learn a few basics about you and your financial situation. Once the loan process gets started, you’ll need to provide proof of where you work, your income, any debts you may have, your assets, and how much you plan to put toward a down payment. Our loan officers will clearly explain your mortgage options and answer all your questions so you feel confident in your decision.

How do interest rates effect my mortgage?

High interest rates bring higher monthly payments and increase the overall interest you’ll pay over the life of your loan. A low interest rate saves you money in both the short and long term. Sometimes a bigger down payment can help you get a lower interest rate. Keep in mind that the money you pay in interest doesn’t ever go toward paying off the principal, so it’s smart to get the lowest interest rate possible and then pay off your house as quickly as you can.

What's the best way to get started?

The best way to start any mortgage process is with the help of a lender that’s 100% on your side — and that’s Lending Hand. Simply call 800-555-12324 or fill out our quick, no-obligation and confidential GET PRE-QUALIFIED FORM now.

Your Mortgage Specialist will start working right away to find your ideal mortgage and will be with you every step of the way. This streamlined, personalized approach means the entire process will be as simple and stress-free as possible. In fact, it can all be wrapped up in as little as 21 days after receiving all your documents. There’s just no better way to take the next steps toward a better financial future.

Get pre-qualified today!

We are here to help you find the right mortgage loan for your needs.

How Can We Help?

Connect with one of our loan experts.

800-555-1234