Conventional Loan | Conventional Mortgage | RHF

Is a Conventional loan right for you?

Get a FREE quote on a Conventional loan and find out how much you qualify for.

What is a Conventional loan?

  • Conventional loans may be conforming or non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac.

Conforming loans:

  • 1-4 family properties and Fannie Mae approved condominiums.
  • Loan amounts up to $417,000. ($625,000 in higher market areas)
  • Rates are determined by an evaluation of risk, ensuring the best rate available.
  • Flexible mortgage insurance options are available, including a non-monthly payment option.
  • You can put as little as 3% down on a purchase.

Non-Conforming loans:

  • Loan product that doesn’t conform to Fannie or Freddie guidelines.
  • Higher loan balances.

Home Buyer Assistance Programs:

At RHF, we also offer different programs that provide down payment assistance to home buyers. They are called the HomeReady and HomePossible programs. These programs are a great avenue for first time home buyers. Borrowers will have the ability to put only 3% down and still close with more flexible mortgage insurance options. They also offer a first time home buyer course that educates you on the entire process as well as qualifies you for these programs. These loans allow you to roll up to 3% of the purchase price in closings costs into your loan. Additionally, they allow 100% of the down payment to be a gift from a friend or family member.

HomeReady is offered by Fannie Mae and HomePossible is offered by Freddie Mac.

Benefits of a Conventional loan:

  • Conventional loans do not charge the additional fees VA and FHA loans do, and usually require a standard 5% down payment. However, with 20% down no MI is necessary.
  • Higher qualifications like better credit scores give you access to better interest rates.
  • Conventional loans are custom to you in relation to amortization (the number of years needed to pay the loan back). This includes a 15, 20, or 30 year fixed rate term.

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