Conventional Cashout
Conventional Refinance
Conventional Purchase
Why Are Conventional Loans So Great?​

Conventional loans are one of the best options for prospective borrowers with a high credit scores.  By having a higher credit score additional benefits become available like no mortgage insurance, lower down payments, and more competitive pricing.  When considering a new home loan conventional financing should be at the top of the list if you have above average credit, a larger down payment, or would like to avoid the additional cost sometimes associated with government insured loans.

Be sure to take a close look at all of the Conventional Programs to find out which one is right for you.

Up to 80% LTV
Competitive interest rates
​Payoff a second mortgage or HELOC
​Csahout to pay off high interest debt 
Competitive interest rates
​Loan amounts to $417K
​30yr, 25yr, 20yr, 15yr, or 10yr
​Fixed or adjustable rates available 
What Are Some Popular Conventional Programs?
 Loan amounts to $417K 3%, 5%, 10% or 20% down Don’t have to be 1st time buyer With or without mortgage insurance

What Are the Waiting Periods After a Hardship?

  • 4 Years from Foreclosure or Short Sale


  • 4 Years from Discharge of Chapter 7 Bankruptcy


  • 2 Years from Discharge of Chapter 13 Bankruptcy

What Are the Advantages of Conventional Loans?

  • Competitive pricing


  • No prepayment penalty ever


  • No mortgage insurance option


  • Up to 45% debt to income ratio


  • Allows for 3% seller paid closing costs
These loans have stricter qualifying guidelines compared to government insured loans. High credit scores are recommended for this program since it will directly impact your monthly mortgage payment. Your debt to income ratio is also carefully reviewed and needs to be below 45%. A common misconception about conventional mortgages is that a 20% down payment is required in order to qualify. The reality is conventional financing allows for 3% down payment when used in combination with monthly mortgage insurance.
Conventional loans can be either Fixed or an adjustable rate. Fixed-rate mortgages have a set interest rate for the entire length of the mortgage term which can be between 10 and 30 years. An adjustable-rate mortgage (ARM) has a term of 30 years with a low introductory rate for a fixed period followed by periodic adjustments according to a specific benchmark, typically a specific LIBOR or a T-Bill index.

Getting the Loan

If you would like to see if you will qualify for this loan, contact one of HBS Licensed Mortgage Loan Originators by clicking here.


Definition

Conventional Loans

Requirements

If you are looking for a home loan, considering a conventional loan is a great place to start. As America recovers from its’ economic turmoil, equity is slowly returning to the average homeowner. You might want to again consider a conventional loan as your vehicle of choice to the American Dream.


A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. The maximum limit for a conforming loan depends on the county and state you live in and can be found here: Fannie Mae Loan Limits.  
If you in income and credit qualify and want to purchase a new home or merely lower the rate or term of you existing home, a Conventional loan may be what is best for you. Conforming loans require a down payment/equity as little as 3%* for a fixed rate term or 10%* for an Adjustable rate. If you need to take cash out for any purpose Conventional financing will allow you to borrower up to 85%* of your home’s value. You can apply for pre-approval of a loan which helps you determine what you can afford to borrow (pre-approval is not guaranteed) or you can apply for a loan after you find a property you are interested in buying. Always check with your Loan Officer for specific guidelines. 

CONVENTIONAL LOANS