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What is a Conventional loan?

A conventional loan is a mortgage not backed by a government agency such as FHA, VA or USDA.  Most conventional loans are conforming.  In fact, they conform to the guidelines of Fannie Mae and Freddie Mac. The purpose of these government-sponsored entities is to make mortgages more widely available. As a result, benefits such as 3% down payment are available. In addition, there are specific programs for first-time homebuyers.

Conventional Conforming

Conforming loans are available for primary, vacation and investment properties. However, the loan limits are 484,350 for a single-family home.  Above this limit, the loan is considered a Jumbo loan. However, in high priced home areas higher loan limits apply called High Balance Loans.

 

Up to 97% Financing 

Conventional fixed rate financing up to 97% with this low down payment program.

  • As little as 3% down
  • 20% Down payment avoids PMI
  • Seller paid closing costs allowed
  • Gift funds allowed
  • Reduced PMI premiums are available for less than 20% down payment.

 

Up to 97% Financing First Time Buyer 

Fannie Mae, HomeReady and Freddie Mac Home Possible programs are for the first-time homebuyer primary residences only.  Consequently, lower rates and mortgage insurance premiums make these programs easier for buyers to qualify.

  • One borrower must be a first-time buyer.
  • Income limits apply to this program
  • Lower rates and private mortgage insurance

Lower Private Mortgage Insurance Premiums.

CharterStone Mortgage has access to preferred low PMI premiums keeping your overall payment low. You will find the final payment with no MI is lower with us than other mortgage providers.  This is a great fit for those with very good to excellent credit.  Other credit levels may want to consider an FHA or VA loan. Let’s compare, call us today!

No Private Mortgage Insurance Loans

This program does not have a separate payment for mortgage insurance and is available up to 97% financing.   The rate is higher than the standard program however the overall payment is lower.  This program works best for very good to excellent credit scores. Call us today to compare programs.

 

Use our mortgage calculator to find the purchase price and payments that are best for you and obtain a free pre-qualification with an experienced loan advisor. Did you know how to pay off a 30-year mortgage faster?

Adjustable Rate Programs

 Adjustable rates have a fixed initial rate period then adjust periodically.  The initial fixed rate is normally lower than the then-current 30-year fixed rate. The rate at adjustment is based on the then index plus a margin. The index, the rate that changes, is often the one-year CMT or LIBOR. This is added to the Margin, a fixed percent through the term. And so, the total is the new adjusted rate.

Conforming FHA and VA offer fixed rate periods. The periods may be 3/1, 5/1, 7/1 and 10/1 loan programs. Adjustable rates may have additional restrictions over the fixed rate options. For instance, the maximum financing is 95%.

These programs are also available for Jumbo and Alternate Credit/income programs.

Call for details. We will guide you to the program that is best for you.  Apply online  or get pre-qualified and find out how to choose a real estate agent

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