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Conventional Mortgages

What is a Conventional Mortgage?

A Conventional mortgage is a home loan that is not guaranteed by any federal or state agency like the Federal Housing Administration (FHA) or Veterans Affairs Department (VA). Many borrowers will take advantage of a conventional loan. Conventional mortgages can have better interest rates than non-conventional mortgages and can be a great option for those with the 20% down payment. It is possible to get a conventional loan with a smaller down payment. However, you can have your down payment be as low as 3%- though if you choose to do this, mortgage insurance (make a definition hover: Mortgage insurance is an insurance policy that protects a mortgage lender or titleholder if you default on payments, pass away, or is otherwise unable to meet the contractual obligations of the mortgage. Also known as PMI/Private Mortgage Insurance) will be placed. This percent is in regards to your purchase price. Example: So 3% of a $200k home is $6k. This is ONLY your down payment. Closing costs {make a definition hover: Closing Costs take care of extra fees such as appraisal, title, PMI possibly, lender fees. These fees depend on parties quotes in the transaction.} are NOT counted in this.

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Common Questions and Answers:

What types of homes can I purchase with a conventional loan?

 You can purchase property types such as: single family homes, condos,  and townhomes.  These homes can be purchased as primary residences, second homes or investment properties.

Will I need mortgage insurance with a conventional loan?

Private mortgage insurance (PMI)  is typically required on a conventional loan any Fannie Mae/Freddie Mac loan when there is less than a 20% down payment.

What credit score do I need to qualify for a conventional loan?

Credit score requirements for conventional loans vary from lender to lender, but a conventional loan may require on average a higher credit score than an FHA loan.

How much do I need for a conventional loan down payment?
The minimum down payment amount for a conventional loan is 3% for a fixed-rate mortgage, and 10% for adjustable-rate mortgages. It is best to have as much saved up as possible for a conventional loan down payment as a down payment of 20% or more can eliminate the need to pay monthly private mortgage insurance (‘PMI’).
How much can I borrow with a conventional loan?

Conventional loan limits are set by Fannie Mae and Freddie Mac and can vary by different areas in the U.S. Please ask your Loan Officer for more information.

What are the benefits of a conventional loan?

Conventional loans may offer some of the advantages of other loan types. They require down payments as low as 3%, there may be less paperwork, and you will not have monthly primary mortgage insurance (‘PMI’) with a down payment of at least 20%.

Guild Mortgage Yuma

Derek Egeberg

Branch Manager

NMLS 180899

State Lic: AZ LO-0915245, TN 236104

PHONE: (928) 246-0422

PHONE: (928) 247-9089

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Bill Craft

Sales Manager

NMLS 1621885

State Lic: AZ LO-0942496, CA-DBO01621885, MLO-54015VA

PHONE: (928) 366-1639

PHONE: (928) 247-9089

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Rosa Castillo

Senior Loan Officer

NMLS 799138

State Lic: LO-0944489

PHONE: (928) 920-2831

PHONE: (928) 247-9089

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Ray Ochoa

Senior Loan Officer

NMLS 214114

State Lic: AZ LO-0915882, TN 238287

PHONE: (928) 246-5937

PHONE: (928) 247-9089

Apply Now

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