Conventional Loans: Flexible Financing for Your Dream Home

Conventional loans offer a reliable and accessible path to homeownership, providing you with a variety of options to meet your financial needs. Whether you're purchasing a new home or refinancing an existing mortgage, these loans come with competitive rates and terms tailored to your goals.

Fixed-Rate Loans

• Available in 30, 25, 20, 15, and 10-year terms.
• Purchase a primary residence with a down payment as low as 3%.
• Monthly payments remain consistent throughout the loan term.
• Mortgage Insurance (MI) applies when the down payment is less than 20%.
• MI is automatically removable when the loan-to-value (LTV) ratio reaches 78% and meets the required time criteria.
• MI can also be removed upon request when LTV reaches 80% and meets the required time criteria.
• Maximum qualifying debt-to-income (DTI) ratio: 45-50%.

HomeReady & Home Possible Loans (For moderate-income applicants – Fixed-Rate Loans)

• Reduced mortgage insurance coverage for loans exceeding 90% LTV.
• Mortgage insurance is cancellable.
• Homeownership counseling available.
• Income limitation: Must be below 80% of the area’s median income.

Adjustable-Rate Loans (ARM)

• Available in 3/1, 5/1, 7/1, and 10/1 terms.
• Monthly payments follow a 30-year repayment schedule.
• Fixed-rate period for the first 3, 5, 7, or 10 years (depending on the chosen term).
• After the fixed-rate period, the rate adjusts annually, which may significantly impact monthly payments