Conventional Loan

What is Conventional Loan?

A conventional loan is one that usually requires a little more down payment, but it puts you in a better position if you want to reduce the cost of the loan in the long run. Typically, this loan has lower fees and rates, and people who have this loan get more access to homes on the market. Unlike the other loans, it is not backed by the government. Instead, it follows the lending rules of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Conventional loans have requirements that must be met to qualify for them, but Christy Christian Home Loans will help you meet those requirements.

Benefits of a Conventional Loan

• Down payment is as little as 3%.*
• Credit scores as low as 620 may be accepted.
• Fixed rates offer consistent monthly payments and simplify planning and budgeting.
• ARMs may have lower initial monthly payments than fixed-rate loans and adjust after the fixed term.
• Available for purchase, refinance, or cash-out refinance.