It’s getting more and more popular to apply for conventional loan, in fact, 60-70% of all applications opt for this type of loan. It’s not backed by the government, but follows Fannie Mae and Freddie Mac Guidelines. The process to get a conventional loan more flexible, it allows low down payments and allows a fast closing.

    One major misconception is that conventional loans need 20% down. Today, we have programs with as little as 3% down.

Features of Conventional Loan:

•  You can use a conventional loan to buy a primary residence, second home, or rental property
• Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer loan terms from 15 to 30 years
• Down payments as low as 3%
• No monthly mortgage insurance with a down payment of at least 20%
• No upfront Mortgage Insurance with down payment of less than 20%
• Mortgage insurance is removable when home equity reaches 20% to the loan value
• No Pre- Payment Penalty (if you decide to pay your loan sooner, you can do it with no penalty)