Conventional Loans
When a person decides to buy an home they have many Home Loans available to them. Often times, people qualify, and apply for a conventional loan. A conventional loan is made by a lender directly to the homeowner, and does not involve the FHA or VA loans programs.
Typically, the requirements for a conventional loan is a 20% percent down payment, and a 80% loan to value on the property. Although, lenders will often go higher on the loan to value percentage based upon the buyer's qualifications. There are also some conventional loans that require as little as 3% down payment.
There are many types of conventional loans. For many years, the standard conventional Mortgage Loan was for a fixed interest rate amortized over a 30 years. Over the years, many people started getting fixed interest rate loans amortized over 15 years. They paid a little more on their Mortgage each month, but paid it off much sooner too.
Another type of conventional loan is the adjustable rate type. These home type of loans have a starting fixed rate that is lower for the first three to five years of the loan. At the three or five year anniversary of the loan, the interest rate adjusts to a higher rate.
Regardless of a person's situation, there exist many conventional Home Loans to fit their needs.
Typically, the requirements for a conventional loan is a 20% percent down payment, and a 80% loan to value on the property. Although, lenders will often go higher on the loan to value percentage based upon the buyer's qualifications. There are also some conventional loans that require as little as 3% down payment.
There are many types of conventional loans. For many years, the standard conventional Mortgage Loan was for a fixed interest rate amortized over a 30 years. Over the years, many people started getting fixed interest rate loans amortized over 15 years. They paid a little more on their Mortgage each month, but paid it off much sooner too.
Another type of conventional loan is the adjustable rate type. These home type of loans have a starting fixed rate that is lower for the first three to five years of the loan. At the three or five year anniversary of the loan, the interest rate adjusts to a higher rate.
Regardless of a person's situation, there exist many conventional Home Loans to fit their needs.