Conventional loans are the most commonly used loan program in the United States. They are also known as conforming loans, because they conform to the guidelines that are set by Fannie Mae and Freddie Mac. That is why they are so popular with lenders since the Fannie Mae and Freddie Mac purchase the home loan making it easier for lenders like us to lend out the money since we know they will be covered. We have helped many people throughout Minneapolis, St. Paul and the rest of Minnesota to use a conventional loan program to own a home.
When it comes to conventional loans what makes them attractive is that they tend to have some of the lowest rates of any home loan program. We work with many great lending sources so we can shop around for you, to insure that you get the lowest possible rate on your conventional loan.
The down payments with conventional loan are on the higher end, especially when you compare them to government loan programs. The typical down payment on a conventional loan is 20%, which for many people can be a high amount however if you can afford it is a great loan option. When you pay more money down, then you end up borrowing less money.
When you combine that with having a great low rate and borrowing less money your monthly payments will be a lot less moving forward. Also you will end up paying less money over the life of the loan. If you can afford the higher down payment it really makes a lot of economic sense to get a conventional home loan.
With most loan programs there is a loan limit. The loan limit with a conventional loan is also set by Fannie Mae and Freddie Mac which is $417,000.
To see if you qualify for a conventional loan you can get a free quote by using our website Purchase Assistant. From there we will contact you to show you how much you could afford.