What is a Conventional Loan?
A conventional mortgage loan is one that is financed through a private mortgage lender such as Carrington Mortgage Services. Conventional loans usually offer the lowest interest rates and most favorable loan terms. A fixed rate loan protects the borrower from increases in interest rates so your payment remains stable for the life of the loan. The most typical conventional loan is a 30 year fixed rate mortgage.
A conventional home mortgage loan is not insured by or offered through the Federal Housing Administration (FHA); the U.S. Department of Agriculture (USDA); or through the Veterans’ Administration (VA).
Is a Conventional Loan Right For Me?
Whether you are a first-time homebuyer or looking to move into your next home a conventional loan is worth looking into. Here are some reasons why it might be right for you.
- Fixed, low rates
- Low debt to income ratio
- Sizable down payment (20% or more)
- Lower private mortgage insurance
- Credit scores ≥ 620
What Type of Conventional Loans Does Carrington offer?
- 30 year fixed rate
- Monthly principal and interest payment never changes
- Safety and security in knowing what your payment will be in the future
- Purchase, Rate/Term and cash-out refinances
- 15 year fixed rate
- Monthly principal and interest payment never changes
- Safety and security in knowing what your payment will be in the future
- The loan will be paid off in half the time as a 30 year fixed rate loan
- While the monthly payment is higher than a 30 year fixed rate loan, the interest rate is typically less
- Purchase, Rate/Term and cash-out refinances
- Home Possible
- Down payment as low as 5% of the purchase price
- One to four unit residential condos, manufactured homes or planned-unit developments**
- 15 and 30-year Fixed rate mortgages available
- No cash-out refinancing options available*
- Gifts, grants, and Affordable Seconds are permitted as a source of funds for down payment and closing costs (restrictions apply)
- Must be the borrower's primary residence
- Home Possible Advantage
- Similar to Home Possible but only 3% down
- One unit properties only (no manufactured homes)
- Fixed rate mortgages
- Must be the borrower's primary residence
How Do I Get a Conventional Loan?
Once you have decided a conventional loan will fit you best, contact us and speak with a Carrington loan officer.
*Min 620 FICO; Mortgage Insurance required with Loan To Value (LTV) over 80%; Homeownership education required
**Restrictions apply. Ask your Loan Officer for details